In the past 7-days, Stellar has managed to record multiple breakout sessions, and it is now up by 26 percent in totality. Recently, Stellar managed to slice through 2 crucial resistance levels, and it is now aiming for more ground in the near term. However, one critical technical indicator seems to be presenting a sell signal for XLM. This could pose a threat to the digital asset’s bullish outlook.
SInce the 26th of February, Stellar’s price movement has been on a downward trend. At present, XLM appears to have set up several lower lows and lower highs, forming a descending parallel channel when connected by the trend lines. The formation of this technical pattern paints a bullish outlook and predicts an 18 percent price upsurge. This is known by tallying the channel’s height to the latest breakout zone at the $0.41 mark. If the descending parallel channel’s prediction is anything to go by, Stellar is in for a surge that could push it towards the $0.49 region.
Additionally, the 1st of April saw Stellar record an impressive surge in buying demand, a factor that saw the remittance token record a critical close above the descending parallel channel’s upper trend line. This move validated XLM’s bullish outlook. Since then, the Stellar price has continuously explored the upper trend line sending signals of continuing to try to push past its projected target.
According to Stellar’s 24-hour chart, the remittance token started the day trading at $0.45492, a 2.72 percent increase from the coin’s support line at $0.44083. At the time of writing, XLM exchanges at around $0.492, an 11 percent increment from the coin’s support line. According to the chart, Stellar is having a good time in the market as it is recording gradual price increments, hence painting a bullish outlook. Another factor adding weight to the current positive price trend is the recent buy signal released by the SuperTrend indicator.
XLM investors and holders should keep in mind that a secondary confirmation will be in the offing after XLM creates a critical close above the $0.43 mark. The $0.43 region coincides with the coin’s 100 Simple Moving Average on the 12-hour chart.
According to Stellar’s 4-hour chart, there is a selling demand silently gaining momentum. If this trend matures, it might lead to a price depreciation below the 50 Simple Moving Average (SMA) at the $0.38 region. If this were to happen, it would completely invalidate the current bullish perspective and kick start a bearish trend.
In such a case, Stellar might witness a 7 percent price decline towards the channel’s midline, currently at $0.35. If sellers prevail and manage to move past this level, XLM is likely to retest the 200 Simple Moving Average (SMA) at $0.34.
Stellar appears to be having a stellar performance in the crypto market at the moment. And with the recent Grayscale addition of 5.5 million XLM coins to Stellar Lumens Trust, the crypto token appears to be headed for the sky in the current bullish wave.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on April 5, 2021 9:55 pm
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