Charted: Stellar (XLM) Skyrockets, Why Break Above $0.20 Seems Likely
Stellar (XLM) surged over 70% in the past three sessions and it broke the $0.1800 resistance against the US Dollar. XLM price is likely to continue higher towards $0.2000 or $0.2200.
- There was a sharp upward move above the $0.1500 resistance against the US dollar.
- The price cleared many hurdles near $0.1650 and settled well above the 100-day simple moving average.
- There was a break above a crucial contracting triangle with resistance near $0.0882 on the daily chart of the XLM/USD pair (data source from Coinbase).
- The pair is likely to continue higher towards $0.2000 and $0.2200 as long as it is above $0.1650.
Stellar (XLM) is Up 70%
In the past few days, there was a strong rise in bitcoin, Ethereum and ripple. As a result, stellar (XLM) also formed a strong support near $0.0700 before starting a fresh increase against the US Dollar.
To start a strong increase, there was a break above a crucial contracting triangle with resistance near $0.0882 on the daily chart of the XLM/USD pair. The pair gained pace above the $0.1000 and $0.1200 resistance levels.
The price gained pace above the $0.1500 level and the 100-day simple moving average. It even broke the $0.1800 level and traded to a new multi-month high at $0.1952. Stellar’s XLM price is currently correcting lower and trading below $0.1900.
Source: XLMUSD on TradingView.com
An initial support is near the $0.1800 level. The first key support is near the 23.6% Fib retracement level of the recent increase from the $0.0725 low to $0.1952 high.
If there is a larger decline, the price could decline back towards the $0.1350 level. It is close to the 50% Fib retracement level of the recent increase from the $0.0725 low to $0.1952 high. Any more losses could lead the pri towards the $0.1200 support zone (the recent breakout zone).
More Upsides in XLM
If XLM price remains elevated, there are chances of more upsides above $0.1900. The next key resistance is near the $0.1950 level, followed by $0.2000.
A clear break above the $0.2000 resistance level may perhaps open the doors for more gains above $0.2050. The next major hurdle for the bulls could be near the $0.2200 level.
Daily MACD – The MACD for XLM/USD is strong placed in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for XLM/USD is currently into the overbought zone.
Major Support Levels – $0.1700, $0.1650 and $0.1600.
Major Resistance Levels – $0.1900, $0.1950 and $0.2000.