The analysis over Stellar Lumens (XLM) is completed utilizing Goichi Hosada’s Ichimoku Kinko Hyo system.
Stellar Lumens (XLM) Weekly Ichimoku AnalysisStellar (XLM) Weekly Ichimoku Chart
A review of Stellar’s weekly Ichimoku chart will probably call one’s attention first to the massive twin volume bars in the weeks of September 16th, 2019, and November 4th, 2019. If the axiom ‘volume precedes price’ is true, then Stellar’s weekly chart is just another example of that axiom showing the truth. The single highest volume week for Stellar was on January 18th, 2019 – the hight of the altcoin boom and the beginning of the altcoin bear market (which still exists almost two years later). The next highest weekly volume bar occurred in the week of September 16th. That week of September 16th initiated the recent recovery rally, with the third-largest weekly volume bar in Stellar’s history just recently printed in the week of November 4th, 2019. Price is currently above the weekly Tenkan-Sen but is still a reasonable distance below the Kijun-Sen. Traders have not seen Stellar test the weekly Kijun-Sen since it broke down below that level back in the week of November 19th, 2018. This is a staggering amount of time for price to not have tested the Kijun-Sen as resistance. From the present value area of 846 sats, Stellar needs to gain over +36%. From a weekly perspective, Stellar has a significant road ahead of it to convert itself to its first bull market. The Cloud ahead is massive and is still growing. It will be some time before we observe a change in the long term trend on Stellar’s weekly chart.
Stellar Lumens (XLM) Daily ChartStellar (XLM) Weekly Ichimoku Chart
Stellar’s daily chart is more forgiving and more optimistic compared to the weekly chart. While the weekly chart identified the second-highest weekly traded volume in September, the second-highest daily volume bar for Stellar (according to Bittrex’s data) on November 5th, 2019. The daily volume on November 5th was the single highest volume in over 671-days. The gradual increase in the average daily volume has been bullish for Stellar. Except for the current daily price below Tenkan-Sen, every other condition on Stellar’s daily chart is decidedly bullish. The Tenkan-Sen is above the Kijun-Sen, and both are above the Cloud. The current and future Cloud is green (Senkou Span A above Senkous Span B). The most essential bullish condition on the chart is the daily Chikou Span, and price are both above the Cloud – with the Chikou Span in ‘open space’ ‘Open Space’ is a concept from trader and analyst Manesh Patel from his fantastic work, Trading With Ichimoku Clouds: The Essential Guide to Ichimoku Kinko Hyo Technical Analysis. Open space is a condition where the Chikou Span will not intercept any candlesticks in the very near future – specifically as a measurement of time. If the Chikou Span will not intercept any candlesticks over the next five to ten trading periods, then it is considered in open space and has a near-effortless time trending in the direction of the breakout of the Cloud. We could observe Stellar consolidate for another two weeks before the open space condition is nullified. Ultimately, we want to see Stellar move and close above the Tenkan-Sen to break the most recent swing highs at 951 sats.