Analysis
XLM price prediction: Why a bearish BTC could hurt breakout chances
The $0.103 resistance has been in place since August. This is the third time since then that Stellar Lumens bulls tried to breach it.
- The daily structure was bullish and indicators showed more gains are likely.
- The brick wall of resistance could push Stellar Lumens bulls backward once more.
Stellar Lumens [XLM] was at a key resistance level after posting gains of 8.2% in the past four days. This has been a market-wide trend- many altcoins have made rapid gains in the past two weeks that broke short-term resistance levels.
This move, though bullish, was yet to break resistance zones that stretched back to August or July. Additionally, these are the levels that are the key lower highs on the weekly chart, and this applied to Stellar Lumens too.
Stellar Lumens price prediction- cases for bearishness
Source: XLM/USDT on TradingView
The primary market sentiment driver is Bitcoin [BTC]. The leader reached a local high of $66.5k but has been pushed southward in the past few days. XLM could see a similar price trajectory in the coming days.
The $0.103 resistance has been in place since August. This is the third time since then that Stellar Lumens bulls tried to breach it. Unless they succeed in flipping the level to support, swing traders can anticipate a rejection and a bearish reversal.
The technical indicators outlined bullish price expectations. The OBV broke a local high, which could be an early signal of a move past the $0.103 resistance. The daily RSI reflected firm upward momentum. Yet, the price action warning signals should not be overlooked.
Rising anticipation for more gains
Source: Coinglass
The Open Interest trends highlighted rising bullish expectations for Stellar Lumens. However, the OI was nowhere near the levels it reached in March and April.
Read Stellar Lumens’ [XLM] Price Prediction 2024-25
Putting the factors together, despite the bullish market expectations, the Stellar Lumens price prediction is bearish. A retracement to the mid-range level at $0.955 is likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
