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Analysis

Stellar Lumens to rally another 40% as…

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While the higher timeframe charts highlighted a healthy bullish outlook, the 1-hour chart showed that Stellar Lumens could see some consolidation in the coming hours or even days.
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Stellar Lumens to rally another 40% as...
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • The higher timeframe market structure and trend favored Stellar Lumens bulls.
  • Some consolidation around the $0.155 support zone was possible over the next week.

Bitcoin [BTC] was trading near the lows of a month-long range. Ethereum [ETH] witnessed losses over the past week. Stellar Lumens [XLM] saw its bullish momentum stall following these developments.

Read Stellar Lumens’ [XLM] Price Prediction 2023-24

The token had been trading within a range (yellow), but there was another way to see things. The $0.096 level was flipped to support on 7 July and sparked the vertical rally. This level had served as resistance since late April.

XLM is in a perfect zone to buy, but is the risk high?

Stellar Lumens [XLM] set to rally another 40% after breaking a major resistance level

Source: XLM/USDT on TradingView

The 1-day chart shows the powerful breakout past the range (yellow) that Stellar Lumens bulls established earlier this month. On 13 July they also managed to drive prices past multiple higher timeframe highs. The most important was the one that XLM had registered on 31 May 2022. This was especially significant because it represented a lower high in XLM’s downtrend last year.

The surge was backed by high trading volume, showing enormous demand and clear bullish intent. Over the past ten days, the bulls have succeeded in flipping the $0.154 level to support. At the time of writing XLM was trading just above this level.

The structure and trend were bullish after the formation of the higher low at $0.124 on 17 July, followed by another move higher. The RSI showed strong bullish momentum and the OBV continued to climb higher.

The lower timeframe chart suggested some choppy price action or a pullback was likely

Stellar Lumens [XLM] set to rally another 40% after breaking a major resistance level

Source: Coinalyze

While the higher timeframe charts highlighted a healthy bullish outlook, the 1-hour chart showed that XLM could see some consolidation in the coming hours or even days.

Since 20 July, the Open Interest has slid lower while prices dithered around the $0.16 mark. The spot CVD also fell. This showed bearish sentiment in the past three days.

Realistic or not, here’s XLM’s market cap in BTC’s terms

Therefore, the shorter timeframes showed that continued selling pressure was possible. The 1-day chart signaled that there is support for XLM to the $0.138 zone, but further losses will flip the bias back to bearish.

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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