- Stellar Lumens price expected to consolidate a current level.
- The nearest support level lies at $0.2800.
- XLM faces resistance in closing above the $0.3100 level.
Stellar Lumens price continues to consolidate around the $0.300 level as XLM markets observe little momentum to a rally on either side. The declining trade volume suggests that XLM may continue to stay at this price level, but we’ll have to take a deeper look into the asset’s price action before making a judgment.
The broader cryptocurrency market sentiment is bullish as most cryptocurrencies recorded a profit across the last 24 hours. These include Bitcoin and Ethereum, the king and queen of the crypto industry that recorded a 13.8 and a 12.30 percent increase from the day’s opening price respectively..
Stellar Lumens price overview: Stellar Lumens price across the last ten days
After spending a long time glued to the $0.1250 level, Stellar Lumens price initiated a bull rally that carried the price to the $0.3500 level. However, the price failed to close above the level and descended. The price bottomed out at $0.20800 on January 11 and has recovered above the $0.300 level since then.
Across the technical indicators, the MACD shows increasing bullish momentum as the price breaks above the $0.3100 level. The indicator has remained relatively silent since January 12 as XLM remained consolidated around the $0.300 level. However, now that XLM has broken above the $0.3100 level, the indicator also shows increasing bullish pressure.
The RSI is neutral but shows an incline as the indicator rises towards the 70.00 level. Currently, the indicator is trading at 62.75, suggesting that XLM has room for upwards movement before a correction.
The Bollinger bands are in a squeeze suggesting that Stellar Lumen price may observe an increase in volatility. The indicator shows potential for movement in either direction, and the recent breakout above the $0.3100 level suggests that the volatility increase has already begun. However, it depends on whether XLM is able to close the day above the $0.3100 level.
Across the daily frames, 11 of the 28 major technical indicators issue a buy signal, while eight indicators issue sell signals. Meanwhile, nine indicators remain neutral and do not indicate support towards either side. Overall, the analysis issues a buy signal, but the strength of the signal is weak as the indicators show mixed sentiments.
What to expect from XLM price?
This sentiment is further highlighted by the four-hour technical analysis that shows a nine-nine divide between indicators issuing buy and sell signals. The analysis is neutral, leaning towards the selling mark.
Traders should expect Stellar Lumens price to continue to stay in and around this price range as low trade volume restricts XLM movements. Unless XLM observes a significant rise in its trade volume, Stellar Lumens price will continue trading around the $0.3000 level. The low trade volume indicates that all eyes are currently on Bitcoin price, which is trading near the $40,000 mark. XLM trade volume would increase once BTC stabilizes.
Conversely, if Stellar Lumens price closes the day above the $0.310 level, XLM may climb towards the $0.325 level, albeit at a slow pace. That seems unlikely, however, with the low trading volume and the mixed technical analysis.