Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XLM broke the trend of recent losses with a 6.5% gain over the past day.
- Positive funding rates indicated the dominance of long traders.
Stellar lumens [XLM] took advantage of the bullish price action in the market and registered a jump of 6.5%. Bitcoins [BTC] A foray above the $29.5k resistance turned the market green and XLM buyers rode the King Coin bullish wave.
Read Stellar Lumens’ [XLM] Price forecast 2023-24
An October 13 AMBCrypto price report highlighted the possibility of more bearish gains after sellers breached the $0.11 support level. However, the recovery in market conditions allowed the bulls to recover, although the $0.11 hurdle could hinder additional gains.
Bullish market conditions provided bulls with an opportunity to reverse recent losses
Source: XLM/USDT on Trading View
Prior to last day’s pump, XLM maintained a significant bearish downtrend since late July. Despite the bearish downtrend, the $0.11 support was a difficult level for sellers until October 6.
Nevertheless, buyers remained active in the market and produced a bullish move between October 12 and October 16, which was rejected at the new resistance at $0.11. As the bulls prepare another attempt to recover the $0.11 level, it could be a different outcome this time.
The Relative Strength Index jumped from 35 to 58 as buying pressure increased significantly. Similarly, Chaikin Money Flow revealed strong capital inflows into XLM, which rose to +0.14.
A bullish recovery from the $0.11 price level would provide the leverage needed to realize more gains from $0.12 to $0.13. On the other hand, a new price rejection at $0.11 could see XLM drop to a range between $0.096 and $0.11.
How much are 1,10,100 XLMs worth today?
Muted reaction in the derivatives market
Source: Coinalyse
While XLM powered the spot market, the futures market reaction was quite dull. Open Interest rose from $35 million to $39 million, but fell back to $37 million at the time of writing.
This indicated fluctuating biases where market participants were not yet convinced of the bullish move. Despite the uncertainty, the funding rate remained largely positive, showing that long traders remained dominant in the market.