Stellar [XLM] witnessed a notable uptrend of 57.22% starting from 04 November until it peaked at $0.1415 on 12 November. Subsequently, the digital currency experienced a slight downturn of 7.84%. Nevertheless, current technical indicators indicate a bullish outlook.
Despite the fact that XLM is still substantially lower by 85% compared to its all-time high of $0.875, the possibility of reaching these levels in the ongoing cycle remains uncertain.
XLM Breaks Out of Range Formation with Style
In a manner similar to numerous other cryptocurrencies in the market, XLM managed to surpass the range in which it had been trading for the past six months. The shift to a bullish market structure became evident when the price breached the lower high at $0.097 on 07 November.
The price level ranging from $0.1 to $0.103 had acted as a significant resistance zone since August. However, Stellar swiftly surged past this hurdle. The sudden uptick triggered a bullish signal on the Supertrend indicator, which remained positive. It would only switch to bearish if the support zone at $0.107 is broken.
Previously, the $0.107-$0.11 range had served as resistance levels back in July. A potential retracement to $0.115 or even $0.11 is likely to present an attractive buying opportunity.
As of the current moment, the 100 and 200-period moving averages have not yet turned bullish. Nonetheless, the price has soared significantly above them, hinting that a golden cross is on the horizon.
Potential Liquidation Scenarios Could Trigger Further Movement
An analysis of the liquidation map revealed that there was a notable concentration of short liquidation levels at $0.1322 and long liquidation levels at $0.123. A significant portion of these liquidation positions were established with high leverage and in close proximity to the prevailing market price.
These conditions could pave the way for Stellar’s price to venture into either of these zones to absorb the liquidity present in that area before continuing its upward trajectory.
The immediate future will unveil which zone XLM gravitates towards first, but a dip to $0.123 or $0.115 is likely to create opportunities for interested buyers. Traders should closely monitor Bitcoin’s [BTC] momentum before considering long positions and must judiciously manage associated risks.
Disclaimer: The information provided in this article represents the writer’s personal opinion and does not serve as financial, investment, or trading advice.