Rising Stellar Price Aims For $1.3 Mark; Buy Now?

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Published 10 mins ago

The rising Stellar (XLM) price projects a recovery possibility with a double bottom pattern at the $1 mark. With sustained buying, the bulls will retest thW neckline resistance of $1.3 after a 3.3%. However, this low volume recovery lessens the confidence for a bullish breakout, and thus, the interested buyer should wait for a daily candle closing above $1.3.

Key points: 

A double bottom pattern will assist buyers in rechallenging the $1.3 resistance
A possible reversal from the $1.3 resistance will invalidate the bullish pattern
The intraday trading volume in the XLM is $107.9 Million, indicating a 31.4% gain.

Stellar price risingSource- Tradingview

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The XLM/USDT pair has been in a range-bound rally for the past three months. Furthermore, the $1.3 resistance and $1 support acted as the crucial barrier, which limited the price action to a confined range.

Amid the recent sell-off in the crypto market, the XLM price revisited the bottom support of $1. However, the price rebounded from this support with a massive bullish candle, indicating the traders are still actively buying at this level. 

This reversal indicates a new bull cycle within this range, which sets a potential bull run to a range resistance of $1.3. Though the destination is marked, the Stellar price currently trades at $0.11 and is gradually rising to the $1.15 supply zone.

Concerning this resistance, the daily technical chart shows a double bottom pattern formation in the daily time frame chart. In response to this pattern, the buyers should surpass this neckline resistance.

A breakout entry from the $1.15 resistance should accelerate the bullish momentum and drive the prices 14% higher to the $1.3 resistance.

However, the volume activity lags despite a strong recovery, indicating a slight weak in bullish momentum. A bearish reversal from the $1.15 resistance will keep the prices wavering at the $1 bottom support.

Technical Indicator

RSI: the XLM buyers maintain an uptrend in the underlying bullishness evident by the ascending trendline highlighting the Bullish divergence. Therefore, the indicator signals an Upcoming breakout entry opportunity for sideline buyers. 

DMI indicator: the Bullish crossover in the DI lines reverses the bearish alignment quickly after the previous event, sabotaging the trend control. However, the falling trend momentum evident by the falling ADX line questions the breakout rally’s strength. 

Resistance levels: $1.15 and $1.21
Support levels: $1.064 and $1

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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