The price of XLM increased after the coin retraced on its chart over the past week. However, XLM has gained 3.6 percent in the last 24 hours and has surpassed its immediate resistance level. The bulls were back in command, and the technical outlook for XLM reflected this sentiment.

Currently, the price of XLM has stabilized at $0.121. XLM has consistently formed higher highs and lower lows over the last few days, indicating market bullishness. If the altcoin can maintain its price momentum, it could approach the $0.130 price ceiling in the coming trading sessions. Stellar's purchasing power remains critical for the coin.

XLM last hovered around this level several weeks ago, at the end of June. A drop from the current price level could push the price of XLM to $0.114. When the XLM price was $0.124, it was met with bearish pressure, causing Stellar to fall to $0.114.

At the time of writing, the altcoin was worth $0.126. As the bulls and buyers returned to the market, XLM flipped its immediate resistance mark into its support line. Overhead resistance for XLM was now at $0.127, followed by $0.129.

On the other hand, local support for the XLM price stood at $0.119. Failure to maintain its price above the aforementioned support line may cause the altcoin to fall to $0.114.

Stellar has made a significant recovery after hitting a 20-month low in the middle of July this year, and trading volume fell on the four-hour chart, indicating a drop in market selling strength.

Technical Analysis

At press time, buying strength had significantly outweighed selling strength. The price of XLM was far above the 20-SMA line.

This reading suggests that buyers are driving the market's price momentum. The price of the altcoin was also above the 50-SMA and 200-SMA, indicating that demand for the altcoin had significantly increased.

In accordance with the other indicators on the chart, Stellar captured a buy signal. The Moving Average Convergence Divergence indicator depicts price momentum and reversal. After a bullish crossover, MACD displayed green signal bars above the half-line.

The green signal bars were linked to the XLM buy signal. The Directional Movement Index is in charge of depicting the current price trend as well as the strength of the trend in the market. Because the +DI line was higher than the -DI line, DMI was positive.

The Average Directional Index (Red) was seen moving towards the 40-mark, indicating strength in the current price direction and implying that the XLM price will continue to rise in the coming trading sessions.

Source:
https://www.newsbtc.com/news/xlm-depicts-buying-resurgence-wheres-it-headed-next/ 

Author:
anushsamal

Posted 
Aug 9, 2022
 in 
Crypto News
 category

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