XLM/USD posted humble gains today and continues to stay right below two very strong and crucial resistance lines. A valid breakout will really signal a potential broader upside movement in the upcoming period.

It is very important what will really happen on the Bitcoin in the upcoming days. Bitcoin is narrowing on the short term, so we still need a confirmation that it will increase significantly in the upcoming period. Only a Bitcoin’s increase will force the altcoins to increase as well. The major cryptocurrencies are located right below some very important resistance levels, so we have wait for fresh trading signals.

You can see that Stellar is trapped below the downtrend line (upside line of the chart pattern) and below the first warning line (WL1) of the descending pitchfork. It continues to stay below the downtrend line  despite the last false breakout. Price could make a valid breakout if it continues to pressure the mentioned resistance lines.

A valid breakout above the WL1 and most important from the triangle will signal a potential larger bullish movement in the upcoming weeks. So, you should wait for a valid breakout before you’ll go long again.

You should know that another false breakout will send the rate down again and a valid breakdown from the chart pattern will announce a significant sell-off, but this scenario is less likely to happen as long as the Bitcoin continues to stay above the 6000 psychological level.