XTM - Breach of downtrend and launchTorum attracted a lot of attention once they were listed on KuCoin, pumped to a high and then fell subject to immense selling pressure. I've had my eye on this project for a while and it has been tempting to "buy the dip". Similar to many alts, $XTM has been heavily affected by the #Bitcoin downtrend since 69k and has struggled to regain solid footing in these turbulent market conditions.
On February 7th, XTM broke its downtrend which started on November 19th, for the first time since the 29th of November. Unlike the initial breach in late November, this recent outbreak has shown more strength by successfully retesting the resistance and turning it to support. This shows buying pressure. It makes sense as after the outbreak, XTM had strong hidden bearish divergence and evidence of the MACD crossing over on the 12H time frame. Consequently, we saw a decrease of 34% (at the time of writing 2/18/22).
Why didn't we buy XTM earlier? Why is it a more interesting trade now?
1) I have been looking for strength after the breakout from XTM, which did not happen in late November - early December. Breach of the trendline, no real consolidation and dip.
2) XTM is seeing its support hold better against selling pressure and the initial close of our most recent swing low (.2175) could be a good entry as if it forms a double bottom.
3) XTM has been having a relatively neutral month despite Bitcoin having a good start to February (despite price action in recent days!). Obviously, this lack of price increase is not a bullish sign, but what this along with volume tells me is that selling pressure has also substantially decreased.
4) Too much overall uncertainty in the market.
XTM was recommended to me by a respected peer, who is bullish on the project's fundamentals. As you can see in the chart, I am bullish from a technical analysis point of view. This will all be heavily influenced by the price action of Bitcoin. Torum is a very low market cap cryptocurrency and thus categorically a higher risk choice of investment, please exercise risk management if you choose to invest.
I am not a financial advisor, this is not financial advice. I was encouraged to start posting trading ideas as I have benefitted tremendously from studying the work of others in this community.
I would love to learn more, if there is anything you would like to discuss XTM, other cryptos, stocks, or trade ideas please feel free to leave them in the comment section below.
Have a good weekend,
C
