XLM/BTC Technical Analysis
Looking at the XLM/BTC's daily chart, notice that the pair has been mainly ranging in the past year, bouncing up and down between key pivot levels 0.000040 and 0.000028. In the past few days, it’s been testing the lower levels once again, with no luck in breaking below it. If history is to repeat itself, we could indeed see a bounce back up towards 0.000040.
Stellar Lumens - XLM/BTC Technical Analysis
However, if the pair succeeds in breaking the lower pivot level, that could open doors for further drops towards the key support and lows of March 2018, at 0.000021, which could be an even better buying opportunity. Keep in mind that the pair also has a thick Ichimoku cloud acting as strong resistance.
Of course, you need to only invest the money you can afford to lose in the volatile crypto markets and make your purchases proportionate to your risk tolerance.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don't forget to complete your risk management due-diligence before developing your investment strategy.