Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XLM’s market structure and price development were both highly optimistic.
- A breakout above USD 0.115 was possible, but cautious traders could take profits near that resistance level.
Stellar Lumens [XLM] has performed remarkably well in recent days. The asset has seen major appreciation over the past two weeks after trending downward since mid-April.
Read Stellar Lumens’ [XLM] Price Forecast 2023-24
However, higher time frame traders should be prepared for the possibility of a range rather than a breakout past a key resistance.
The Bullishness Behind Bitcoin [BTC] likely affected XLM bulls in the past two weeks as well. Therefore, a downturn in sentiment behind the king of crypto could have a negative impact on Stellar’s price.
Earlier highs could thwart further gains
![Stellar Lumens [XLM] posts gains of 41% in two weeks and will continue to rise](https://statics.ambcrypto.com/wp-content/uploads/2023/06/PP-1-XLM-price.png)
Source: XLM/USDT on TradingView
The $0.0935 level represented the previous low on XLM’s one-day price chart. The price broke past this level on June 27 and did so with huge trading volume. The pump continued for the past two days with no retracement.
This showed strong bullish intent in the market. The $0.1 level could serve as support if XLM sees a dip in the coming days. However, the area that initiated this rally had the same low ($0.076) as that of March 9.
If we plot a range (yellow), it can be seen that the mid-range of $0.095 at the end of April served as resistance. It was also near the psychologically significant level of $0.1.
The $0.115 level was also resistance in mid-October 2022. Therefore, XLM bulls may face opposition and possibly rejection in this area.
XLM Open Interest rises alongside the price
![Stellar Lumens [XLM] posts gains of 41% in two weeks and will continue to rise](https://statics.ambcrypto.com/wp-content/uploads/2023/06/PP-1-XLM-coinglass-OI.png)
Source: Mint glass
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Stellar’s Open Interest saw a big surge in the past two weeks. It was especially pronounced after the token approached the $0.1 level. This meant a large flow of capital to the market and emphasized the strong bullish sentiment of speculators.
The price action and the Open Interest chart showed intense bullishness in the market over the past few days. This would likely continue and XLM is likely to test the $0.115 resistance. However, it remains to be seen whether the bulls will force a breakout or be rejected.