XLMBTC breaks back below 50-day moving average
Stellar/Bitcoin Index (XLMBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
XLMBTC ended Saturday at 0.00000732 losing BTC0.00000011 (-1.48%) on low volume. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (XLMBTC as at May 23, 2020):
Saturday's trading range has been BTC0.00000026 (3.5%), that's below the last trading month's daily average range of BTC0.00000039. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLMBTC. Prices continued to consolidate within a tight trading range between 0.00000703 and 0.00000751 where it has been caught now for the whole last trading week.
Even with a strong opening Stellar closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on May 5th, XLMBTC lost -4.88% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical support level at 0.00000709 (S1). The market closed back below the 50-day moving average at 0.00000744. XLM/BTC was sold again around 0.00000748 after having seen highs at 0.00000750, 0.00000751 and 0.00000749 in the last three trading sessions. Obviously there is something going on at that level.
XLM shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 0.00000751 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 0.00000701 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for XLM/BTC. Out of 77 times, XLMBTC closed higher 62.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.14% with an average market move of 4.50%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more