After the currency’s retracement over the last week, XLM gained momentum. XLM gained 3.6% over the past 24 hours and was able to surpass its immediate resistance level. Bulls reigned supreme and technical views of XLM reflected that sentiment.
XLM’s current price is at $0.121. XLM’s price has been steadily increasing in recent days. This is a sign that the market is bullish. The altcoin could be looking at the $0.130 ceiling in the next trading session if it can maintain its price momentum. Stellar is dependent on Stellar’s purchasing power.
The XLM Price was at its lowest point several weeks ago around June 30th. A fall from current price levels could see XLM prices drop to $0.114. Stellar dropped to $0.114 after XLM traded at $0.124 previously.
Four hour chart: XLM price analysis
At the time this article was written, altcoin’s price was $0.126. Bulls and buyers resurfaced in the market. This made XLM turn its immediate resistance into its support. Overhead resistance in XLM was $0.127, then $0.129.
Local support was $0.119 for XLM. The altcoin can drop to $0.114 if it is unable to maintain its price above the support line.
Stellar’s price has seen a significant recovery since it had reached a low of 20 months in July.
Stellar’s trading volume fell on the hourly chart. This is an indicator of declining selling power.
Technical Analysis
The technical outlook is extremely bullish for XLM’s price. This chart shows the 4-hour charts. There has been a sharp spike in the number of buyers on XLM’s chart.
Relative Strength Index was stored in an overbought zone, meaning that the asset was undervalued.
At press time, buying strength was heavily outweighing selling strength. The XLM was priced well above the 20 SMA line.
This suggests that the market is driven by buyers. Altcoin’s price was also higher than the 200-SMA (50-SMA) which indicated that there had been a significant increase in demand.
Stellar received a buy signal in line with other indicators. The Moving Average Convergence Divergence shows price momentum, and the reversal of that. MACD saw green signal bars at the halfway line after it had experienced a bullish cross-over.
Green signal bars are tied to the buy signal for XLM. Directional Movement Index (DMI) is used to show the market’s current trend as well as the strength of that trend. The +DI was higher than the -DI, which was a positive sign for DMI.
The Average Directional Index, Red (representing strength in price direction) moved towards the 40 mark. This indicated that XLM will see an uptrend over the next trading session.
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Featured image taken from StormGain. Charts from TradingView.com