XLMUSD unable to break through key resistance level
Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, XLMUSD ended the week 4.35% higher at 0.0671 after losing $0.0006 (-0.89%) today. Trading $0.0009 higher after the open, XLM/USD was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 03, 2020):
Friday's trading range has been $0.0021 (3.1%), that's below the last trading month's daily average range of $0.0035. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 0.0683 (R1), the cryptocurrency closed below it after spiking up to 0.0686 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 26th, XLMUSD lost -6.13% on the following trading day. Stellar found buyers again today around 0.0665 for the third trading day in a row after having found demand at 0.0659 in the prior session and at 0.0661 two days ago.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the close-by swing low at 0.0659 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for XLM/USD. Out of 94 times, XLMUSD closed lower 59.57% 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 five trading days, showing a win rate of 55.32% with an average market move of -0.10%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 2.54% and XRPUSD closing 0.86% higher. On the flipside the worst performers have been ETHUSD closing -0.59% lower and BTCUSD losing -0.29%. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 7.62% and ICXBTC closing 6.57% higher. The worst performers of the day have been BTGUSD tanking -8.19% and BTGBTC closing -5.0% lower. Read more