XLMUSD runs into sellers again around 0.0692
Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
XLMUSD finished Saturday at 0.0672 losing $0.0009 (-1.32%) on low volume. Trading $0.0011 higher after the open, XLM was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 9th, XLMUSD lost -9.94% on the following trading day. 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 (XLMUSD as at May 23, 2020):
Saturday's trading range has been $0.0025 (3.67%), that's below the last trading month's daily average range of $0.0043. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLMUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After trading down to 0.0667 earlier during the day, Stellar bounced off the key technical support level at 0.0668 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 0.0694 in the prior session, XLM/USD ran into sellers again around the same price level today, failing to move higher than 0.0692.
The cryptocurrency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 0.0642 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for XLM/USD. Out of 451 times, XLMUSD closed lower 49.45% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 53.88% with an average market move of 0.22%.
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