Stellar Lumens, Algorand, Maker Price Analysis: 04 January
Stellar Lumens formed a double bottom on the charts and reversed the downtrend it had previously been on as it looked to flip the $0.145-level to support. Algorand and Maker also had a bullish outlook as they broke above crucial levels of resistance.
Stellar Lumens [XLM]
The downtrend for XLM since mid-December showed signs of being reversed. The cryptocurrency’s price broke to the downside of a symmetrical triangle but then saw a double bottom form at $0.125, following which it climbed on the charts.
Its price rose past $0.138, the 61.8% retracement level for XLM’s surge from $0.078 to $0.233 back in November.
The MACD formed a bullish crossover and rose above zero, indicating strong bullish momentum, while the price also appeared likely to flip the $0.145-level to support.
This development would see XLM rise to test the 50%-level at $0.156 in the coming days. XLM’s recent gains were backed by heavy trading volume and suggested conviction in the market.
ALGO traded within the range of $0.37 and $0.28 after late-November, although it recently broke out to the upside of the range. It flipped the $0.39-level to support and approached the previous local high at $0.45 once more.
This level has been a resistance in the past, but ALGO’s breakout from the range suggested that further upside was likely. The $0.5-level will be the target for bulls on this breakout.
The RSI was on the verge of rising into the overbought territory, although this was not a sell signal by itself. The Stochastic RSI showed that there could be further upside in the near-term.
In conclusion, the $0.45-level can be expected to be flipped to support soon.
Flipping the $580-level from a region of supply to one of demand was a bullish development for MKR, with the price gaining by around 26% since then and hinting at a further upside.
The OBV highlighted strong buying volume behind MKR’s rise over the past few days. The Awesome Oscillator also showed strong bullish momentum behind MKR, and $735 and $815 were levels of resistance to the upside that bulls would target.