Market Notes | $XLM | Breaking through the 0.17 level
First, a definition: support and resistance are actually price zones, not a single precise price. It’s normal for prices to test the area repeatedly.
Next, how to read it: the first rebound after a break below a level is often seen as a test. If the price is rejected below the level, that lends more credence to the idea that support has turned into resistance.
Multiple data points that corroborate one another are more reliable than looking at just one, but even more signals can’t provide a definitive answer.
#XLM
First, a definition: support and resistance are actually price zones, not a single precise price. It’s normal for prices to test the area repeatedly.
Next, how to read it: the first rebound after a break below a level is often seen as a test. If the price is rejected below the level, that lends more credence to the idea that support has turned into resistance.
Multiple data points that corroborate one another are more reliable than looking at just one, but even more signals can’t provide a definitive answer.
#XLM