- Stellar Lumens price expected to consolidate further.
- The closest support level lies at $0.2660.
- XLM faces resistance in crossing above the $0.3200.
Stellar Lumens price has once again failed in crossing above the $0.3200 level. The price has remained glued to the $0.3200 mark for more than a week now and continues consolidating around the level. In the past few days, XLM has fluctuated between the $0.3200 mark and the $0.2800 level.
The broader cryptocurrency market observes a bullish sentiment across the last 24-hours as most cryptocurrencies record price increases across the period. Bitcoin, the king of cryptocurrencies, records a 4.32 percent increase climbing above the $37,000 level. Ethereum, on the other hand, records a 16.23 percent gain across the period.
Stellar Lumens price overview: Stellar Lumens price across January
Stellar Lumens price enjoyed a strong start to 2021 as the price quickly found bullish support as it rose. The bull rally caused XLM to rise from lows of $0.12750 to above the $0.4000 mark before stopping. Bearish pressure increased and the bullish momentum died down. The Stellar Lumens price then observed a retracement, falling back to the $ 0.20800 level before stabilizing.
While the price has recovered since then, XLM observes little momentum on either side as the price volatility remains low. The declining trade volume makes it hard for XLM to make a clear breakout in either direction.
Across the technical indicators, the MACD shows low bullish momentum but suggests a bearish turnover as the two EMAs start to converge. The reversal will only be canceled if XLM climbs above the $0.3200 mark.
The RSI has remained neutral for the past ten days as price volatility has continued to dwindle across the period. Currently, the indicator is at 56.91, returning to the 50.00 mark.
The Bollinger bands have converged to a squeeze showing low volatility in the short term. The indicator shows that the market is observing little to no momentum on either side as the price continues consolidating around the $0.3000 mark. The squeeze suggests that XLM volatility may spike, but the bands are not yet showing expansion. This suggests further consolidation before a breakout.
The four-hour technical analysis issues a buy signal with 17 of the 28 major indicators issuing buy signals across the timeframe. On the other hand, only three indicators show a bearish sentiment while the remaining eight indicators are neutral.
The 24-hour technical analysis issues a strong buy signal as none of the technical indicators are issuing sell signals. The analysis shows that 18 indicators issue a buy signal while 10 indicators remain neutral, not leaning towards either side.
WHat to expect from Stellar Lumens price?
Traders should expect XLM to continue consolidating at the level for the next few days as traders continue to speculate. The price action may make a breakout once the price of Bitcoin stabilizes. The positive technical indicators suggest a bullish breakout to the $0.3500 level with resistance at $0.3250.
Conversely, if XLM falls below the $0.2660 mark, XLM will fall back to the $0.250 level with a potential downwards movement to $0.2000.