Stellar Lumens to rally another 40% as…
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.
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?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 likelyWhile 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.