- XLM’s recent price action has taken it near crucial resistance levels, with the 20-day, 50-day and 200-day EMAs
- If the company fails to hold above key support levels, XLM could be exposed to further downside risks
Stellar [XLM] has recently recovered from its long-term support around $0.08. Despite facing challenges in regaining its bullish momentum, the altcoin’s recent price action has pushed it closer to key resistance levels.
Let’s analyze whether the bulls have enough strength to continue this trajectory.
XLM Price Analysis
Source: TradingView, XLM/USDT
After finding a reliable recovery from the $0.08 support, XLM rose to test its immediate resistance levels. However, the altcoin has struggled to rise above its 200-day EMA, which currently stands at $0.1007, which has limited gains in the recent uptrend.
At the time of writing, XLM was trading at $0.0954 and hovering around the 20-day EMA ($0.0945) and 50-day EMA ($0.0946). The confluence of these EMAs has provided near-term support at the lower limit of an ascending channel, potentially providing a basis for further recovery.
The Relative Strength Index (RSI) stood at 53.55, indicating a somewhat neutral stance in the XLM market. A move above 60 could confirm short-term bullish momentum. Should Bitcoin witness a massive influx of buyers and XLM bulls close above the 200-day EMA during a bull run, this could pave the way for a rally towards the $0.11 resistance.
Important levels to watch
Support – The $0.094 level is immediate support near the confluence of the 20-day and 50-day EMAs. Any decline below this level could expose XLM to further losses, with the next support region at $0.087-$0.089.
Resistance – The 200-day EMA ($0.1007) remains a crucial level to watch. A break above could lead to a test of the resistance at $0.102, followed by a move towards $0.109.
Derivatives data for XLM revealed THIS
Source: Coinglass
XLM’s Open Interest rose 2.89% to $30 million, indicating that traders are still actively engaged. Similarly, trading volume increased by about 4% to $55 million. The long/short ratio on Binance for XLM/USDT was 1.858, indicating that many traders are currently opting for long positions.
OKX’s ratio stood at 1.68, reaffirming short-term bullish sentiment.
XLM appeared to be at a key juncture at the time of writing, with the ascending channel challenging its bullish trajectory. If XLM fails to break above its prevailing pattern, the coin could continue its sideways move with some downside risks if it falls below the $0.094 support.
Traders should keep an eye on Bitcoin’s broader market trend, especially as it will likely influence XLM’s price action.
