Long-Term Trade Recommendation: Stellar/Ethereum
The Stellar/Ethereum pair (XLM/ETH) may look bearish now. From a long-term perspective, however, XLM/ETH looks strong. You just have to know when to buy low and when to sell high.
Technical analysis show that XLM/ETH is trading within an ascending channel, which makes it a very good candidate for a long-term trade recommendation. From a short-term perspective, it is trading inside a falling wedge pattern. The pair is likely to continue to trade bearishly until the price drops to the long-term support level. The increased demand at the long-term support level should catalyze a breakout and ignite a bull run to the top end of the range.
It is likely that this would be the case because XLM/ETH has followed the same process twice. It broke out of a falling wedge on March 18, 2018 and climbed the top end of the range on April 19. XLM/ETH broke out of a wedge again on June 29 and moved to the top end of the range on July 25.
The strategy is to wait for Stellar/Ethereum to fall as close to 0.00046 as possible. If bulls create another higher low setup here, the uptrend will likely be maintained. That should generate the momentum needed to break out of the falling wedge and climb to our target of 0.0008.
The process may take more than three months.
Daily Chart of Stellar/Ethereum on Binance
As of this writing, the Stellar/Ethereum pair is trading at 0.00056861 on Binance.
Summary of Strategy
Buy: As close to 0.00046 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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