The crypto market has been providing hints of an alt-season as digital assets such as LINK, Cardano and COMP exhibit massive gains.
According to Peter Brandt, Stellar (XLM) could be the next altcoin to pump in the crypto markets.
Stellar (XLM) is currently testing the $0.10 resistance zone and a break above this level would confirm the drive up.
Many alt-coins have been performing well since the Coronavirus crash of mid-March. The performance of alt-coins coupled with Bitcoin’s lack of volatility has led many crypto traders and investors to conclude that the environment is ripe for an alt-season. Evidence of this can be found through the recent impressive gains seen by digital assets such as Cardano (ADA), Compound Finance (COMP), ChainLink (LINK) and Zilliqa (ZIL).
Stellar (XLM) Could be the Next Alt-Coin to Pump
With Bitcoin continuing to trade within the tight range of $9,300 and $8,800, the crypto market environment is conducive enough for other alt-coins such as Stellar (XLM) to pump in the crypto markets. The market effects of the Twitter hack that happened 24 hours might have eroded and the crypto markets can once again continue with business as usual.
The possibility of Stellar (XLM) being the next altcoin to pump was highlighted by Peter Brandt via the following tweet.
Mr. Brandt is a veteran Commodities and Futures trader with over 40 years of experience in classical charting principles. In the chart of Stellar (XLM), he has identified an inverted head and shoulders which is a bullish chart pattern. The chart also highlights the 2018 support zone around $0.17 that could end up being an area of considerable resistance for Stellar on its move up.
Brief Technical Analysis of Stellar (XLM)
Taking a look at the daily Stellar chart courtesy of Tradingview, the following observations can be made.
Stellar’s price at $0.096 is above the 50-day, 100-day and 200-day moving averages pleading the case for bullish momentum.
Trade volume is in the green however, the daily MACD hints at possible exhaustion and a local top for XLM.
The MFI is also high at 75 pointing at a retracement or possible sideways movement for Stellar (XLM) in the days to come.
If Mr. Brandt’s inverted head and shoulders pattern plays out, XLM has the following areas of resistance on its way up: $0.10, $0.11, $0.12, $0.135, $0.142, $0.153 and $0.162.
The drop in Bitcoin’s dominance since the halving event in May has provided the perfect crypto market environment for altcoins to thrive. This has been seen through the impressive performances of ChainLink (LINK), Zilliqa (ZIL), Compound (COMP) and more.
It is with this background that veteran commodities and futures trader, Peter Brandt, has suggested that Stellar (XLM) might be the next altcoin to pump in the crypto markets. Mr. Brandt has identified an inverted head and shoulders pattern that could resolve to the upside for Stellar (XLM).
A brief technical analysis reveals that Stellar (XLM) is indeed bullish but could face a possible pullback in the days to come. However, if the bullishness is sustained, Stellar could indeed have a successful run in the crypto markets.
As with all technical analyses of altcoins such as Stellar (XLM), traders and investors are advised to use stop losses and to keep an eye out for sudden movements from Bitcoin that might ruin the party.