Can XLM extend its recovery and reclaim the $0.11 price level
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XLM broke the trend of recent losses with a 6.5% pump over the past day.
- Positive funding rates hinted at dominance of long traders.
Stellar Lumens [XLM] took advantage of the bullish price action in the market to register a 6.5% jump. Bitcoin’s [BTC] foray above the $29.5k resistance flipped the market green and XLM buyers rode the king coin’s bullish wave.
Read Stellar Lumens’ [XLM] Price Prediction 2023-24
A price report by AMBCrypto on 13 October highlighted the possibility of more bearish gains after sellers breached the $0.11 support level. However, the upturn in market conditions allowed bulls to rally, although the $0.11 hurdle could stand in the way of additional gains.
Bullish market conditions presented an opportunity for bulls to reverse recent losses
Prior to the pump over the past day, XLM maintained a significant bearish downtrend since late July. Despite the bearish downtrend, the $0.11 support was a tough level for sellers to crack until 6 October.
Nevertheless, buyers remained active in the market and produced a bullish move between 12 October and 16 October which was rejected at the new $0.11 resistance. With bulls preparing another attempt to recover the $0.11 level, it could be a different outcome this time.
The Relative Strength Index jumped from 35 to 58, as the buying pressure ramped up significantly. Similarly, the Chaikin Money Flow highlighted strong capital inflows into XLM, rising to +0.14.
A bullish recovery of the $0.11 price level would provide the leverage needed to push for more gains at $0.12 to $0.13. On the flip side, another price rejection at $0.11 could drop XLM into a range between $0.096 to $0.11.
How much are 1,10,100 XLMs worth today?
Muted response in the derivatives market
While XLM pumped in the spot market, the reaction in the futures market was quite dull. The Open Interest jumped from $35 million to $39 million but dropped back to $37 million, as of the time of writing.
This hinted at fluctuating bias with market participants not yet convinced of the bullish move. Despite the uncertainty, the funding rate remained largely positive, showing that long traders remained dominant in the market.