The goal of a technical trader is never about some deep philosophical alignment with the fundamental vision. This is business. It’s not personal. And allegiances to long-term visions are a personal decision when they conflict with the empirical evidence.
However, with most other asset classes, traders have the option to play both long and short with no problem. In the crypto space, for the most part, you’re dealing with a one-sided game.
In any case, we like to remain objective and see what’s in front of us. As we take a close look today at Stellar (XLM)and Cardano (ADA), our goal is to identify the important technical levels of support that may offer either an opportunity for involvement or a key battleground that can inform us further as to the state of these markets and their dominant trends.
- High: $0.28036
- Low: $0.26504
- Major Resistance Level: $0.30
- Hourly MACD: Strong Bullish Reversal
The chart for Stellar (XLM)is possibly one of the most interesting across the cryptocurrency space right now.
We generally like to see relative strength, and there has been plenty of that here. In fact, Stellar (XLM) was able to rally nearly 100% in just 12 days earlier this month.
Now that we are pulling back in Stellar (XLM), it is wise to take note of some key levels that may provide a pullback entry point for what clearly is a coin that is trying to emerge as a new leadership play in the cryptocurrency complex as a whole.
The most striking level to watch for here is between $0.23 and $0.24, which is where we see a confluence between the 50-day and 200-day simple moving averages. This would also represent a flush out of stop-loss orders under the $0.25 level, which appears to be an advantageous place to back up the truck in XLM.
- High: $0.14418
- Low: $0.13539
- Major Resistance Level: $0.15
- Hourly MACD: Strong Turn off Lows
Cardano (ADA)is another extremely interesting chart in play right now. We have a number of key support levels to test, and little immediate threat of breaking through the ultimate lows for the bear market over the next day or two unless things really get out of hand on the downside.
First off, the market will be dealing with key support at the $0.13 and $0.12 levels, before coming into a potential test of its bear market lows around $0.113.
Ahead of that, however, we suggest you don’t overlook the possibility of trendline support, which should come into play for Cardano (ADA) at just above the $0.1320 level.
If we do start to see support and an inflection back the other way in ADA, look for initial resistance to come into play all the way back at the $0.16 level, where it has appeared on a number of occasions.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com