The upward momentum on Stellar continues unabated. However, the chart shows that a reversal precondition is being formed.
A Wolfe Wave pattern has been discovered, which consists of six five-wave components, where the first and third ones create an ascending resistance line. The Stellar price is in the “Sweet Zone”, which is indicated in red on the chart. Completion of the pattern results in formation of the sixth downward wave, the target of which extends the line connecting the tops of waves 1 and 4.
Thus, in terms of Stellar, preference should be given to short positions. A trader can enter the market at or around the current prices or when the resistance level is retested.
📌 Entry: 0.34114
✔️ First goal: 0.33376
❌ Stop order: 0.34373
