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Forex Trading Strategy: Fibonacci Daily Strategy On Cryptocurrencies

It’s been a while since we talked about one of our favorite cryptocurrencies. I’m talking about Stellar Lumens,  a platform that connects banks, payments systems, and people to move money quickly, reliably, and at almost no cost.

After its sudden surge to the all-time-high level of $0.50 back in February, Stellar Lumens, and its token, XLM’s price action has been as choppy as any other major cryptocurrency. However, from a fundamental point, the company is going strong, establishing partnerships with the likes of IBM, Deloitte, and Stripe.

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Recent developments include becoming one of the seven currencies to be legalized in Thailand. This was permitted by the SEC which will be in effect by the end of June.

Despite its volatility in the past few months, Stellar Lumens has the highest 1-year market price gain among top-15 cryptocurrencies. Its gains were over 2600%, followed by IOTA with 1500%, and Monero 1100%. Stellar is the world’s 7th largest cryptocurrency by the market cap which is around $4.6 billion.

XLM/USD Price Action

Looking at its price action on the daily chart, it has been on a downtrend since April and broke below the daily

Ichimoku cloudend of May. On Monday it continued to drop almost reaching the 61% Fibonacci retracement level of $0.19. It then corrected the losses by the end of the trading day. The future cloud appears bearish.

If the current market sentiment continues, it is likely that we see XLM/USD test this key support level before bottoming out. The pivot levels are set at 0.26 and 0.32, which are the 50% and 38% Fibonacci levels respectively. Once the new uptrend restart, we could see the gains to be capped at 0.39.

Join our investing group to get the latest trading signals, stop-loss, take-profit and other limit order ideas on cryptocurrencies, forex and stocks. Our comprehensive signals will help you create a unique strategy for you, according to your risk tolerance.

As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.

Don’t forget to complete your risk management due-diligence before developing your investment strategy.

This article was originally published on InvestDiva.com.

Source : https://www.nasdaq.com/article/fibonacci-based-investment-strategy-for-stellar-lumens-xlm-cm976616

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