This BeInCrypto article will introduce the technical analysis of Polkadot (DOT), Stellar (XLM) and Aave (AAVE).
DOT registered an ascending channel until August 24, and when it rises it again tests resistance of the lower part of the channel.
There are three days in consolidation and for today August 31, we have a massive purchase of this asset, with a very good volume, now what can be expected from it:
In a bullish scenario, we enter the channel again and it retests the lower zone of the channel to support above $ 29.50 to gain the necessary momentum and initially reach the channel’s middle zone, which is about $ 32-34 to take. a break and go for the strongest resistance at $ 36.
At the moment there are no bearish divergences or any bearish sign in the price action, so as not to meet this objective. For growth from the proposed point of 18.59%
As for the bearish scenario, it can exit the channel again to make a possible rebound to retest the resistance of $ 30.21 and thus fall towards the 200-period EMA to consolidate there, this would be accompanied by a downward movement of Bitcoin and in addition to a rise of the domain.
With XLM we have been in an accumulation channel since August 26, which has been perfectly respected without any fake out or false break.
At the moment it had a fall on August 30, accompanied by the correction of BTC. But its support of $ 0.3278 helped it to push the price higher than the middle part of this channel, which is above $ 0.3440, that is, this zone of $ 0.3278 is an area of important purchase and liquidity of the price action.
To calculate our bullish scenario, what we do is draw a line, according to the width of our accumulation channel, and in this way we could know where the price would go and effectively see how it would face a block resistance above $ 0.3942 but, To get there, we must break the strongest resistance in the short term of $ 0.3590 that has failed to pass.
A good entry point would be $ 0.3428 and with a stop below the channel support, above $ 0.325.
We do the same process of drawing our line below the channel support and we see how by drawing it it gives us a block of liquidity above $ 0.3046, where there was a strong resistance between August 5-9.
To enter the sale or short, we would have to wait for the break of the support so that it then falls, make a retest of the area of $ 0.3271 and that second movement there to be able to enter the sale with the operation to target the $ 0.3046.
With AAVE we are having a symmetrical triangle with a support above $ 350 and, in turn, with a diagonal resistance from August 17. At the moment the price is trying to overcome this resistance, but with very little volume, so it is very likely that it can take support above the 200 period EMA in 4 hours, above $ 367.
For a bullish scenario, AAVE should first break this diagonal resistance line, and then go to look for the resistance of $ 475 which has in turn been a resistance block in the past, this movement must be accompanied by volume and what We see is that since August, we have had the same volume range, so it is likely that some good upward movement will bring us in the future.
In a contrary scenario and, for the possible downward movement, we draw a beginning of the price resistance, that is to say above 450 dollars and we extend it to the support or purple line, as you can see in the graph, where we would have as main support the 251 dollars and also agrees with an institutional purchasing block.
To be able to enter a short operation, it would be recommended first to wait for the breakout of $ 350, and in the second movement where this area is tested again, to put a short operation. Even with the first target $ 300, collect a partial at that level and then let the position run to $ 251.
For the latest technical analysis on BeInCrypto, click here.
The post DOT, XLM, AAVE – Technical Analysis was first seen on BeInCrypto.