Stellar Lumens [XLM] has recently experienced an uptrend, with a notable 8.2% increase over the past four days. This positive movement mirrors a broader trend in the altcoin market, where many digital assets have surged, breaking through short-term resistance levels within a two-week timeframe.
Despite this bullish momentum, Stellar Lumens has yet to overcome resistance zones dating back to August and July, which represent crucial lower highs on the weekly chart.
Evaluating Bearish Scenarios for Stellar Lumens Price
The prevailing market sentiment, predominantly steered by Bitcoin [BTC], has seen the leading cryptocurrency hit a recent peak of $66.5k before witnessing a downward trend. In light of this, XLM might follow a similar price trajectory in the upcoming days.
Notably, the $0.103 resistance level has stood firm since August, posing a significant challenge for Stellar Lumens bulls. Without a successful breach and transformation of this level into support, traders may face a rejection, signaling a potential shift towards bearish sentiment.
While technical indicators have hinted at optimistic price movements – such as the OBV surpassing a previous high and the daily RSI indicating robust upward momentum – caution is warranted given the existing warnings within the price action.
Anticipating Further Growth Possibilities
Observations on Open Interest trends have showcased a growing bullish sentiment towards Stellar Lumens, albeit not reaching the peaks witnessed in March and April.
Considering these factors collectively, the prevailing outlook for Stellar Lumens leans towards bearishness, with a probable retracement towards the $0.955 mid-range level.
Disclaimer: This content is not intended as financial, investment, or trading advice. It solely reflects the perspective of the author.