XLMUSD rises to highest close since September 12th
Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XLMUSD ended Saturday at 0.0816 gaining $0.0024 (3.03%) on high volume. Today's close at 0.0816 marks the highest recorded closing price since September 12th.
Daily Candlestick Chart (XLMUSD as at Oct 17, 2020):
Saturday's trading range has been $0.0064 (8.08%), that's far above the last trading month's daily average range of $0.0034. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XLMUSD.
After trading down to 0.0777 earlier during the day, Stellar bounced off the key technical support level at 0.0792 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Tuesday, XLMUSD actually lost -3.14% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 0.0747.
Although XLM is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XLM/USD. Out of 130 times, XLMUSD closed lower 54.62% of the time on the next trading day after the market condition occurred.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more