Stellar Completes TD Signal that Preceded 95% Rally
The cryptocurrency Stellar has formed a technical signal that previously preceded a significant price increase. According to analyst Ali Martinez, Stellar completed the setup phase of the Tom Demark Sequential indicator on its weekly chart, which consists of counting candles of the same polarity through two distinct phases.
A bullish signal emerges when nine red candles complete the sequence, suggesting a potential upward reversal. The same pattern formed in March at similar price levels and preceded a 95% surge.
The setup phase ends after nine candles, and Stellar just finished this with nine red candles, indicating that the downtrend may be exhausting itself. However, Martinez's analysis highlights the historical precedent without guaranteeing a repeat performance will materialize.