Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.
Over the last week, $50 billion were wiped off the total crypto market capitalization. The losses are visible throughout most cryptocurrencies in the industry. Now, it seems like the carnage could be over, or at least temporarily paused.
In fact, Stellar Lumens, TRON, and Cardano are signaling a rebound from the current price levels after plummeting for the last few days. The following technical analysis will evaluate whether there is a chance for these cryptos to surge.
Total Crypto Market Cap by TradingView
Stellar Lumens (XLM)
In the last ten days, Stellar Lumens plunged over 35 percent. This cryptocurrency went from trading at a high of $0.083 on Nov. 12 to a low of $0.053 today. Despite the bearish momentum, several technical patterns estimate that XLM could be bound for a bullish impulse.
Based on the 1-day chart, Stellar appears to be forming a Dragonfly Doji. This type of candlestick pattern signals a potential price reversal from bearish to bullish. The long lower shadow represents the sell-off seen during the period of the candle. But, as the day is closing, the demand for XLM is increasing, which is pushing the price back up.
The TD sequential indicator also adds credibility to the idea of a potential upswing from the current levels.