Stellar Lumens [XLM] surges past two-month resistance, breaches $0.1
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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- XLM’s breakout occurred on considerable trading volume.
- Bulls who missed the move must exercise patience.
Stellar Lumens [XLM] traded within a range from mid-January but broke emphatically out of it in the past 24 hours. This flipped the bias of XLM from bearish at the range highs to strongly bullish. Bitcoin [BTC] bulls have defended the $26.6k-$26.9k region in recent days and were driving prices higher at the time of writing.
How much are 1,10,100 XLMs worth today?
Buyers would be eagerly awaiting an XLM pullback, which might or might not arrive. To the north, $0.107, $0.115 and $0.119 are resistances to watch out for.
The breakout from the range was extremely promising
The aforementioned range extended from $0.0824 to $0.096. On 9 and 10 March, Stellar Lumens saw a heavy wave of selling and fell to $0.075, but it had rebounded back above $0.082 by 14 March. This suggested that the drop was a result of extreme fear, but the quick rally gave bears no time to assert themselves.
The OBV has been on a slow uptrend since mid-February. This accelerated in the past two weeks and highlighted the strong demand for Stellar Lumens. The RSI on the four-hour chart leaped to 77 to show hefty bullish momentum. A pullback could occur, but it was not mandated just because the RSI is in overbought territory.
However, in the event of a pullback, the $0.096-$0.099 area will offer bulls a good buying opportunity. This was the resistance that had remained unbroken from November till recently. A drop below $0.09 would be necessary to shift the bias back toward bearish if an XLM pullback fell beneath $0.096.
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Futures market sentiment remains bullish
The rise in Open Interest alongside the rapid gains XLM has made recently was a strong signal that the futures XLM market participants were strongly bullish. The funding rate was also positive, which underlined the bullish sentiment.
This does not rule out the possibility of a pullback, hence buyers should avoid FOMO.