A cryptocurrency analyst has highlighted that Stellar has just triggered a TD Sequential buy signal. Here’s what occurred the last time this pattern emerged.
Stellar Surged the Last Time a TD Buy Signal Appeared at Current Prices
In a recent post on X, analyst Ali Martinez discussed a Tom Demark (TD) Sequential signal that has formed on Stellar’s weekly price chart. The TD Sequential is a technical analysis indicator used to identify potential price reversals.
The indicator operates in two phases, both involving counting candles of the same type (red or green) on the chart, which don’t need to be consecutive.
The first phase, called the “setup,” counts until nine candles of one color are recorded. Once complete, the price is considered to be at a potential turning point. A setup ending with nine red candles signals a potential bullish reversal, while nine green candles suggest a bearish one.
After the setup, the second “countdown” phase begins, counting until 13 candles. Following this countdown, another reversal point is indicated.
For Stellar, the TD Sequential has just completed the setup phase. The chart shared by Martinez shows this pattern forming in XLM’s weekly price. The latest setup consists of nine red candles, suggesting the downtrend may be exhausted and a bullish reversal could be ahead.
Interestingly, this isn’t the first time XLM has shown a TD Sequential buy signal at these price levels in recent months. The chart indicates a similar pattern emerged in March when the cryptocurrency was trading around the same price. That earlier signal preceded a 95% price surge for Stellar.
Given this history, the latest signal could also be bullish for XLM. However, it’s worth noting that the March setup didn’t lead to an immediate rally; a period of consolidation occurred before the breakout.
It remains to be seen whether the indicator will hold true for Stellar this time and how long any potential rally might take to materialize.
XLM Price
At the time of writing, Stellar is trading around $0.243, down over 4% in the past week.
Frequently Asked Questions
Of course Here is a list of FAQs about the Stellar signal that previously triggered a significant price surge designed to be clear and helpful for all levels of interest
Beginner Definition Questions
1 What is this Stellar signal everyone is talking about
It refers to a specific technical analysis pattern or indicator that appeared on Stellars price chart just before a major historical price increase such as the 95 surge mentioned
2 What is Stellar
Stellar is a decentralized opensource blockchain network designed to facilitate fast lowcost crossborder payments and asset transfers Its native cryptocurrency is called Lumens
3 What is technical analysis and a signal
Technical analysis is a method of evaluating investments by analyzing statistics gathered from trading activity like price movement and volume A signal is a specific pattern or indicator reading that suggests a potential future price direction
4 Does this signal guarantee another 95 price surge
No absolutely not Past performance is never a guarantee of future results That signal was a historical event While similar patterns can suggest potential markets are influenced by many unpredictable factors like news regulations and overall market sentiment
Intermediate Mechanism Questions
5 What specific indicator or pattern was this signal
While the exact indicator can vary depending on the analyst common candidates for such a dramatic move include
A bullish divergence on the RSI or MACD
A powerful breakout and close above a key multimonth resistance level on high volume
A completion of a major bullish chart pattern like an inverse head and shoulders
6 What usually causes such a sharp price surge in crypto
A surge is typically a combination of technical triggers and fundamental catalysts The signal often captures the technical ignition point
7 How can I check for this signal myself
You can use free charting platforms like