Stellar’s XLM, like the rest of the altcoin market, gave back part of its recent gains. It fell about 9% from the Q3 high of $0.23 to a low of $0.21. However, it tagged a short-term support level that has seen a spike in demand and could reverse the recent decline and offer a 9% gain.
XLM price extends uptrend momentum
On the price charts, the altcoin was already up 4% after defending the range low of the rising channel (blue).
In the past two weeks, XLM has been making higher lows and higher highs, printing the rising channel pattern. Simply put, the altcoin uptrend momentum has been steadily rising.
For traders, the channel’s range lows and highs have offered trading opportunities since mid-September. If the trend extends, XLM could target the range high ($0.25). That would translate to a 14% potential upside if hit.
But it must first clear the recent price high of $0.23 and the mid-channel range. If the immediate hurdle is hit, that would be a 9% gain from the $0.21 support.
At press time, the Relative Strength Index (RSI) was above the neutral line, further suggesting there was more room for an upside move.
The short-term bullish outlook would be invalidated in case of a bearish breakout below the rising channel. Such a move would open a downside risk scenario to $0.20.
Whale activity could fuel XLM price recovery
That said, the liquidation heatmap showed an upside pool right below $0.24, which aligned with the mid-channel range and $0.23 level mentioned above.
As such, in case of volatility-driven market swings, the target could be reached, further reinforcing the bullish thesis and 9% potential gain.
Besides, CryptoQuant indicated a spike in whale buying during the recent pullback. The renewed whale interest could help the altcoin defend the range lows and boost the uptrend.
Overall, the fact that the recent 4% rebound was also being driven by spot bidding by whales could bolster bulls’ push to $0.23 or higher. But a breach below the short-term rising channel would be a warning sign of building selling pressure, effectively invalidating the bullish thesis.
Final Summary
- Stellar’s XLM defended its short-term support above $0.21 amid whale spot bids
- The recovery gain could extend to 9-14% if XLM maintains its short-term trend