InstaForex

November 5, 2021

Crypto Watchlist: Stellar Lumens (XLM) & Fantom (FTM)

 Despite no major catalysts released yet today crypto assets have had a relatively volatile session, creating potential short-term technical opportunities for traders to watch out for.


Today we’ll check out Stellar Lumens (XLM) and Fantom (FTM), both of which seem to be presenting setups for both short-term bulls and bears.


XLM/USD 1-Hour

First up for our quick technical take is Stellar Lumens (XLM/USD), which we covered two weeks ago after traders gained exposure to XLM through the Grayscale Stellar Lumens Trust.


At the time, XLM/USD had retest a major resistance area around the $0.42 handle before falling to the next strong area of interest around $0.37.



Since then, we saw XLM make it’s way lower even further to $0.33 before the bulls confidently took back control for the rest of October.


On the one hour chart above, we can see that today’s short-term spike in volatility has taken XLM/USD lower to the strong area of interest around $0.37, which also happens to line up with the rising lows pattern marked with the rising trendline.


If this area does hold once again, that could draw in the longer-term technical traders who hold a bullish bias, as well as fundamental traders who still see the Grayscale event as a bullish catalyst longer-term.


FTM/USD 1-Hour

Fantom (FTM) is on deck with potential technical setups for both the bulls and the bears. As we mentioned in our last post on FTM, a dip may be in the cards last week as traders may take profit from the massive bull run in October after the Fantom Developer conference held in Dubai last week, and it looks like that’s how it’s been playing out.


So, right now, the price action is leaning in favor of the bears as the momentum to the downside remains strong, making any short-term bounces one to watch for potential short-term bear trade setups at the falling trendline above.



But for the bulls, there may be a setup ahead as the market reaches the $2.40 – $2.50, which has been an area of strong interest in the past. During the October bull run, this area held the bulls back for around two weeks before it broke, now making it a potential support area. We can also see a bullish divergence between stochastic and price forming, so if the market makes it to $2.50, the odds rise that longer-term bulls, both fundamental and technical may jump back in and take control.


What do you all think? Is XLM/USD a long play on both the short and longer-term timeframes? Are FTM/USD bulls done taking profits and ready to load back on the longer-term uptrend!