The wider altcoin market may be in a slump, but one well-known trader is making an exception for Stellar Lumens. He has taken a leveraged XLM position and is looking to take his profits in two tranches as the price goes up, with a 2.6x gain in his sights.
Altcoin Market Weakness Sets the Stage
Weakness has been the order of the day for many investors lately. The Moon Show’s most recent analysis attributes this to the fact that the total altcoin market cap has slipped below an important support line to levels not seen since mid-September. Some, however, are seeing it as a chance to be selective.
Stellar Lumens’ Historical Patterns Fuel Optimism
Our featured trader on the show made the case for XLM, which he says has settled into a historically significant pattern. Having followed the coin’s cycles for nine years, he can vouch for what happens when it comes to rest on this support: a good rally is usually not far behind. “Every time XLM hits this support, you will see a powerful move,” was how he put it on the episode, confident that history has a way of repeating itself.
He was quick to point out XLM’s track record of making a comeback from a deep correction. Take the pandemic crash, for instance; Stellar Lumens posted a 3000% run after that. With the coin at the base of a multi-year formation, he considers it a rare opportunity to get in.
Profit Targets and Trading Strategy Revealed
So he has done just that, adding to his XLM position via leverage. His intention is to offload half of what he has once 2.6 times the present price is reached for a nice short-term return. The other half will be sold at an upper bound of $1.83, a figure he chose for technical reasons. It is a risk-managed way to trade in these volatile times.
Community Engagement and Educational Initiatives
On top of his XLM dealings, the trader is working on a challenge to build a Solana account up to 100 SOL from 1. An update on The Moon Show had him reporting 20 SOL in the balance of the YouTube channel to date and a following to match. He also has a video tutorial in the works on the ins and outs of meme token trading, to share some of the lessons and opportunities he has come across in the crypto market lately.
This article reflects the channel author’s opinion and is not investment advice.
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