Stellar (XLM) has experienced a robust rebound and it bounced off a crucial USD 0.11 support level. Chart indicators point to a promising outlook for bullish investors, indicating a significant shift in momentum since mid-August. This second recovery from the same level of support underlines the formidable strength of bulls, signaling the potential for further gains.
a price analysis notes that the $0.11 support level has emerged as a steadfast line of defense for XLM enthusiasts. Recent price action has illustrated that bears have to work hard to flip this level in their favor, extending bearish momentum.
However, the bulls have shown unwavering resolve, as evidenced by the latest support retest on Sept. 4, which triggered a notable price pump.
As per the latest data, XLM is trading at USD 0.124 Mint geckoThis reflects a 2% increase in the last 24 hours and an impressive 10% increase in the last seven days. These gains are indicative of growing optimism among XLM investors.
XLM chart indicators favor bulls
The on-chain indicators are consistent with the bullish sentiment surrounding XLM. The Relative Strength Index (RSI) is hovering around neutral 50, indicating healthy demand for XLM.
In addition, the Chaikin Money Flow (CMF) is at +0.10, indicating an inflow of capital into XLM. This influx is usually a bullish sign, pointing to growing investor confidence in the cryptocurrency.
Despite the resurgence of optimism, XLM faces a battleground in the US long/short ratio on exchanges. The tight margins indicate that sellers are actively trying to thwart the bullish rally.
As long positions move closer to the critical 50% long/short break point, sellers are currently holding the upper hand, putting pressure on XLM’s upward trajectory.
XLM market cap currently at $3.4 billion. Chart: TradingView.com
What lies ahead for XLM?
With the USD 0.11 support level proving to be a formidable stronghold for bulls and chart indicators pointing to further gains, XLM enthusiasts are eyeing a target range of USD 0.17 to USD 0.19, aiming to revisit July highs.
The crypto market remains dynamic and volatile, so investors should remain vigilant and abreast of developments that could affect XLM’s price trajectory.
XLM has shown an impressive recovery supported by strong support and positive chart indicators. While challenges persist in the form of bearish resistance in the long/short ratio, bullish momentum remains intact, with investors set to recapture the July highs. The cryptocurrency market continues to evolve and XLM’s resurgence is a testament to its resilience in the face of market fluctuations.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Stellar