XLMUSD dominated by bulls lifting the market higher throughout the day
Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLMUSD ended Saturday at 0.1077 surging $0.0107 (11.03%) on high volume. This is the biggest single-day gain in over three weeks. Today's close at 0.1077 marks the highest recorded closing price since June 29, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.0972, the market confirmed its breakout through the prior session high after trading up to $0.0117 above it intraday.
Daily Candlestick Chart (XLMUSD as at Aug 01, 2020):
Saturday's trading range has been $0.0120 (12.37%), that's far above the last trading month's daily average range of $0.0070. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for XLMUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
XLM/USD managed to close back above the 20-day moving average at 0.0978.
Crossing above the upper Bollinger Band for the first time since July 12th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.0978 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 8th, XLMUSD gained 5.97% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for XLM/USD. Out of 64 times, XLMUSD closed lower 57.81% of the time on the next trading day after the market condition occurred.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more