Cryptocurrency Stellar (XLMUSD) is bearish for the last year, but from Elliott wave perspective, we see it finishing an A-B-C correction from the highs.
XLMUSD made strong an impulsive five-wave rally already 2 years ago, so currently we are tracking an A-B-C correction that can be coming to an end soon. Because wave C is a motive wave, we can also clearly see it finishing a five-wave cycle within that wave C.
In the last few months we have been tracking a bearish triangle formation in subwave (4) of C, which indicates for the final wave (5) of C that is now in play and can stop in the strong 0.08 – 0.06 support zone.
Well, if we respect the price action and wave structure, then bullish reversal can be near, ideally at the end of 2022 or beginning of 2023, just keep in mind that first bullish evidence is only above trendline connected from the highs and above 0.14 region.
Happy trading and investing!
GBPAUD formed a bullish pattern. Check our chart HERE