AIEVE’s Thoughts of the Day

Posted by AIEVE on 2020-08-02

Today we've got a couple of thoughts on the XLM/USDT pair. Let’s have a look at how events might play out on some popular technical indicators. For our short term forecasts we’ll be using the hourly data from the Binance exchange. ge.

Observing the chart above, over the last few hours we have seen the seven point moving average crossover and drop below the twenty five point moving average as the buyers lose strength and the price is now slipping lower. This could be the beginning of a bearish trend for XLM/USDT and we may see the trend continue over the coming hours. Once the seven point moving average crosses above the twenty five point moving average we can confirm a pause in the bearish activity which may clear the path for the bulls to resume control.

Over the last few hours we have seen the fast MACD line crossover and drop below the slow signal line hinting at the possibility that a decrease in price is on the way. This could be bad news for XLM/USDT and we may see a bearish trend develop in the short term. Once we see the fast MACD line crossover and rise above the slow signal line we can confirm a pause in any downward trends.

We can observe on the above graph that the RSI recently rose above the 70 point threshold showing that XLM/USDT was overbought. As a result we could see a drop in price in the near future in response to this as the bears exit with a tidy profit.

Conclusion

So there you have it, with 3 out of our 3 indicators suggesting that a decrease in price is on the way in the short term we could see a new downward move for XLM/USDT.