After bouncing back from a significant support level around $0.08, Stellar (XLM) is facing obstacles in regaining its bullish momentum. Despite recent price movements bringing the altcoin closer to crucial resistance points, it remains uncertain if the bulls have the necessary strength to sustain this upward trend.
Let’s delve into an examination of the current situation to determine the potential outcomes.
Analyzing XLM Price Trends
Following a solid rebound from the $0.08 support, XLM made a push towards its immediate resistance levels. However, the cryptocurrency has encountered difficulties in surpassing its 200-day EMA, currently situated at $0.1007. This has acted as a barrier to further gains during the recent uptrend.
At the moment, XLM is trading at $0.0954, oscillating around both its 20-day EMA ($0.0945) and 50-day EMA ($0.0946). These EMAs have converged to offer short-term support at the lower end of an ascending channel, potentially forming a base for a potential recovery.
The Relative Strength Index (RSI) stands at 53.55, indicating a relatively neutral stance within the XLM market. A move above the 60 mark could signal an uptrend in the near future. If Bitcoin experiences a surge in buying activity and XLM bulls manage to close above the 200-day EMA in a bullish market scenario, it might pave the way for a rally towards the $0.11 resistance level.
Crucial Levels to Keep an Eye On
Support – The immediate support level is around $0.094, where the 20-day and 50-day EMAs intersect. A drop below this point could expose XLM to further losses, with the subsequent support zone lying between $0.087 and $0.089.
Resistance – The 200-day EMA at $0.1007 remains a pivotal level to monitor. Breaking above this barrier might lead to a challenge of the $0.102 resistance, with a potential move towards $0.109 thereafter.
Insights from XLM Derivatives Data
The Open Interest for XLM has increased by 2.89% to reach $30 million, indicating continued trader involvement. Trading volume has also risen by roughly 4% to $55 million. On Binance, the long/short ratio for XLM/USDT stands at 1.858, reflecting a preference for long positions among many traders.
At OKX, the ratio is 1.68, reinforcing the current bullish sentiment in the short term.
As XLM finds itself at a critical juncture presently, with its bullish trend facing a challenge within the ascending channel, failure to break above the current pattern could result in sideways movement for the coin, potentially leading to downside risks if it drops below the $0.094 support level.
Traders should closely monitor the broader market trend of Bitcoin, as its movements are likely to influence the price action of XLM.