Stellar Lumens: How high can bullish rebound go?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Price rebound from key price level maintained XLM’s upward momentum.
- Open Interest registered a 38.9% increase over the past 24 hours.
Bitcoin [BTC] jumped from $29.2k to $29.6k over the past 24 hours, jumpstarting a wave of decent gains across the market. Earlier, Stellar Lumens’ [XLM] 44% price pump between 18 July and 20 July fell into a deep retracement after a price rejection at the $0.180 price level.
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However, a 15% rebound from the $0.140 price level maintained XLM’s upward momentum. This pushed Stellar Lumens into the top 20 trending tokens on Coin Market Cap. Are there more gains ahead for XLM?
Bulls rebound from key level to maintain momentum
The sharp rise of the Relative Strength Index (RSI) from the neutral 50 mark showed the influx of new demand for XLM. This was also echoed by the On Balance Volume (OBV) registering a decent uptick in trading volume. Together, they highlighted strong buying pressure and rising volume flow.
Placing the Fibonacci retracement tool (yellow) between the recent swing low (17 July) and high (20 July) revealed the bullish intent. It showed that the bearish retracement waned close to the 73.6% Fib level ($0.136) allowing bulls the opportunity to rally.
As of press time, XLM traded at $0.160, just above the 38.2% Fib level ($0.159). Near-term bulls could gain leverage with prices close above the 38.2% Fib level ($0.159). Such a move could lead to profit targets at the 23.6% Fib level ($0.167) and the resistance level at $0.180.
Alternatively, a close below the 38.2% Fib could usher sellers back into the market with short-term targets at the 50% Fib level ($0.152) and 61.8% Fib level ($0.145).
Open Interest revealed…
How much are 1,10,100 XLMs worth today?
XLM’s Open Interest (OI) witnessed a spike over the past 24 hours, per Coinalyze. The OI rose from $59 million to $85 million, representing a 38.9% change. This showed that market speculators were actively backing the bullish ride.
Similarly, Spot CVD continued to rise over the same period. This helped buyers gain momentum in the short term.