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- XLM’s recent price action showed that there is potential to continue the bullish momentum, especially if the price can close above the 200-day EMA.
- The long/short ratio on the major crypto exchanges showed a slight lead for bulls.
Stellar [XLM] recently recovered from its long-term support near the $0.08 zone, allowing the bulls to regain key moving averages on the daily chart.
This move caused XLM to rise approximately 12% in recent days. At the time of writing, XLM was trading at $0.0982.
With the 20- and 50-day EMAs converging and looking north, the bulls have an excellent opportunity to regain their momentum.
Are bulls looking to topple the $0.1 resistance?
Source: TradingView XLM/USDT
XLM is currently above both the 20-day and 50-day EMAs, which were $0.0956.
If the 20-day EMA finds a comfortable close above the 50-day EMA and the moving averages continue to look north, XLM could challenge its 200-day EMA at $0.1027.
If a breakout occurs above this level, the next immediate target would be the resistance at $0.103, followed by the $0.1126 zone.
It is worth mentioning that XLM also jumped above its long-term trendline resistance (blue dotted line) and reversed it to support during the recent rally.
The RSI also climbed steadily to 59.15, showing an increasing bullish edge. However, the recent lower highs of price action have shown a somewhat bearish divergence.
As a result, we could see a bearish move in the short term, before an upswing.
If the broader crypto market turns bearish or XLM fails to break above the 200-day EMA, the altcoin could revisit the $0.08 support.
In this scenario, the price action would exhibit a descending triangular structure. Failure to hold the USD 0.08 level could result in a deeper pullback towards the USD 0.075 level.
Derivative data revealed THIS
Source: Coinglass
XLM volume rose more than 36% to $45.44 million over the past 24 hours, indicating relatively high trading activity. Open interest for XLM also increased by 3.17%.
The long/short ratio on Binance was 2.0075, with more traders currently opting for long positions. Similarly, OKX’s long/short ratio of 1.6 also reflected buyer interest. This showed bullish sentiment on the major stock exchanges.
Investors should keep a close eye on the support zone at $0.08 and the resistance at $0.103. A strong breakout above the latter could open doors to test the higher levels.
Read Stellar’s [XLM] Price forecast 2024–2025
However, if the current level is not maintained, it could confirm a bearish pattern on the daily chart.
Moreover, it is crucial to consider Bitcoin’s movement and overall macroeconomic sentiment before making a purchasing decision.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
