Stellar Forms Signal That Preceded 95% Rally
The cryptocurrency Stellar has formed a technical signal on its weekly chart that previously preceded a significant rally. According to analyst Ali Martinez, who spotted the signal in a post on X, Stellar completed the setup phase of the Tom Demark Sequential indicator, which identifies potential price reversals by counting candles of the same polarity through two distinct phases.
The setup phase ends after nine candles, and a bullish signal emerges when nine red candles complete the sequence, suggesting a potential upward reversal. In this case, Stellar finished the setup with nine red candles, indicating that the downtrend may be exhausting itself.
The same pattern formed in March at similar price levels and preceded a 95% surge. However, it's worth noting that the signal didn't trigger an immediate rally but required a consolidation period first.