Stellar (XLM) Price Reaching Break Point

XLM (Stellar) has announced staking on its ledger, which could trigger bullish fundamental sentiment.  We therefore take a look at the technical setup.

XLM (Stellar) is solidly in an Uptrend across all time horizons (Short-, Medium- and Long-Term).  The Uptrend is confirmed by our trend scoring system but also visually as price has been making higher highs (HH) and higher lows (HL). Hence, the recent pullback appears to be an opportunity.

XLM has been consolidating in a symmetrical triangle pattern (see graph), which is nearing a pinnacle and can break out either up or down. However, during an Uptrend, it’s likely to break upward and head back to resistance of ~ $0.500.

Trade setup. Trend Traders are getting another shot at an Uptrend during this pullback.  Particularly around the nearest support zone of $0.375 – 0.400.  Swing Traders could also get involved at the support zone and exit near the next resistance zone of $0.480-$0.520.

Momentum turned bearish recently (MACD Line is below MACD Signal Line), but RSI has rebounded to above 50  (bullish).  MACD Histogram bars appear to have reached a trough (see graph), which would suggest that momentum (MACD Buy signal) could swing back to Bullish near term.

OBV (On Balance Volume) is flattish, indicating that volume on Up days is about equal to volume on Down days.  Hence, the selling pressure is abating and the demand and supply forces are in equilibrium.

Support and Resistance. Nearest Support Zone is $0.375-0.400 and the nearest Resistance is at $0.480-$0.520 and then ATH at $0.600.  Notice how price has respected SMA 50, which also reinforces the support zone. Fibonacci levels are $0.472 (78.6%) and $0.371 (61.80%) – which also confirms the support (~$0.400) and resistance zones (~$0.500).

 

Stellar XLM price analysis 4.3.2021 new

 

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