XLM turns bullish, gains 41% in two weeks
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XLM’s market structure and price trend were both strongly bullish.
- A breakout past $0.115 was possible, but prudent traders could look to take profits near that resistance level.
Stellar Lumens [XLM] has performed remarkably well in recent days. The asset saw a large appreciation over the past two weeks after going through a downtrend since mid-April.
Read Stellar Lumens’ [XLM] Price Prediction 2023-24
However, higher timeframe traders must be prepared for the possibility of a range instead of a breakout past a key resistance.
The bullishness behind Bitcoin [BTC] in the past two weeks was likely to have influenced XLM bulls as well. Hence, a downturn in the sentiment behind the king of crypto could have negative consequences for the price of Stellar.
Former highs could oppose further gainsThe $0.0935 level represented the previous lower high on XLM’s 1-day price chart. The price broke out past this level on 27 June, and did so with enormous trading volume. The pump continued over the past two days without retracement.
This showed strong bullish intent in the market. The $0.1 level could serve as support if XLM saw a dip in the coming days. However, the area which initiated this rally had the same low ($0.076) as the one from 9 March.
If we plot a range (yellow) it can be seen that the mid-range mark at $0.095 served as resistance in late April. It was also near the psychologically significant level at $0.1.
The $0.115 level was resistance back in mid-October 2022 as well. Therefore, XLM bulls could face opposition and possibly rejection in this area.
XLM Open Interest spikes alongside price
How much are 1,10,100 XLMs worth today?
Stellar’s Open Interest saw a large wave upward over the past two weeks. It was especially pronounced after the token approached close to the $0.1 level. This signified a large capital flow into the market and highlighted strong bullish sentiment from speculators.
The price action and the Open Interest chart showed intense bullishness in the market in recent days. This was likely to continue and XLM is likely to test the $0.115 resistance. However, whether the bulls will force a breakout or get rejected remains to be seen.