XLM, the digital asset native to the Stellar network, is showing signs of a possible reversal in its recent downward trend, according to analysis from a reputable cryptocurrency analyst.
Analyst Indicates Buying Opportunity for XLM
A recent post on social media by the analyst signals a buying opportunity for XLM, citing the presence of a bullish signal from the TD Sequential indicator.
The expert emphasized that for XLM to see a potential surge in price, it needs to hold above the $0.33 mark; otherwise, a failure to do so could result in a setback.
Technical Analysis and Critical Levels for XLM
Technical analysis by CryptoCrypto reveals that XLM has been trading in a narrow range between $0.34 and $0.39, with a key support level at $0.347 that has held for the past four trading sessions.
The current price consolidation will play a crucial role in determining the future trajectory of XLM. Based on recent market movements and historical patterns, sustained support at this level could propel XLM up by 25% to reach $0.45.
However, a breach of the support level and a daily close below $0.33 might signal a potential 33% decline, pushing the price down to $0.22 in the upcoming period.
Examining the daily chart for XLM, it is evident that the price has extended significantly from the 200 Exponential Moving Average (EMA) while still indicating an overall upward trend.
Positive On-Chain Indicators
On-chain analytics firm, Coinglass, reports an uptick in interest from long-term holders and traders as XLM nears a critical support level.
Data reflecting XLM’s spot inflow and outflow metrics suggests a substantial outflow of $6.5 million in XLM from exchanges, hinting at heightened buying interest, potential upward momentum, and an opportune entry point.
Alongside long-term investors, traders are exhibiting a strong bullish sentiment in the market.
The long/short ratio for Binance’s XLMUSDT pair is currently at 1.87, with a ratio above 1 indicating a bullish stance. Reports indicate that 65.4% of top traders on Binance hold long positions, contrasting with 34.6% in short positions.
Considering the combination of on-chain metrics and technical analysis, the prevailing outlook favors the bulls, indicating a likelihood of maintaining control to support XLM at the $0.35 mark moving forward.
Currently, XLM is trading around $0.358, experiencing a 3% price dip in the last 24 hours. Simultaneously, trading volume has decreased by 19%, hinting at reduced engagement from traders and investors amid market uncertainties.