🔎 #XLM Analytics

There are signs of the formation of an upward five-wave cycle according to the Elliott📈 theory. The coin corrected in a zigzag ABC pattern and marked the $0.088 support level. At the same time, a reversal pattern of a double bottom was formed. The price went down twice on the support line. After that, an imbalanced volume appeared and the price began to form an upward cycle.
At the moment, two waves of the cycle out of five possible have presumably formed. Wave I reached the $0.16 level and pulled back. Now this level acts as resistance. The second corrective wave did not go below $0.11 and is now presumably fully formed. For the correct formation of wave III, the price needs to consolidate above the resistance of $0.16. If this does not happen and the price fixes or does not reach this level, the upward structure will be broken, and the price will continue to consolidate near the lows📉.
On the local timeframe of 8H, there are signs of the formation of wave III. A bullish pinbar candlestick pattern has formed. A long candlestick shadow indicates that the seller was trying to push through the price. But the buyer reacted and returned the price approximately to the place where the candlestick opened. I would also like to draw your attention to the rest of the seller's characteristic candlesticks with volume. Apparently, there is a limit set of positions by a major player, which can have a positive effect on the development of a five-wave upward cycle.
The MACD indicator has marked a bullish crossover. The MACD line has crossed the signal line from the bottom up, which is a signal of continued growth. According to the DMI, there are signs of local strength of the bears. Most likely, this is due to the redemption of coins for sale. But the positive moving average is above the trend moving average, and the negative one is bent down.
Both timeframes indicate a possible true development of an upward cycle. If the structure is not broken and the conditions for the formation of wave III are met, the cycle will maintain its upward structure and overcome the resistance. In case the price goes significantly below the $0.11 level, the structure may be broken, and the price will continue to move sideways near the lows.