• XLM price sees a bullish nudge in the Asian trading session today.
  • Stellar has increased its buy-side volume even before prices reached buy-zone support.
  • Expect bulls to build momentum for next week,bringing XLM price back on the front foot.

Stellar price (XLM) bulls are impatient and have already started buying at the low of the month. Not far below lies the base of a bearish triangle at $0.30 (represented as a black line on the chart below).  Bulls are currently haltingStellar’s slide towards the $0.30 base. Expect bulls to try to pare this week’s losses and position for a retest and break above the ascending trend line (also black on the chart) by next week.

XLM price encourages impatient bulls to buy the dip

Stellar price has been on the back foot a bit these past two weeks after bulls failed to break the monthly R1 resistance level at $0.45.. Bears then saw their opportunity and started an intermediary downtrend, supported by the black descending trend line. As price traded lower, both the 55-day and the 200-day Simple Moving Averages (SMA) at $0.36 were broken, and a bearish triangle started to form with the historical $0.30 level as a base. 

XLM price has seen bears caught by surprise this morning as Stellar price buy-side inflows increased.. This has caused a knee-jerk response from bears, as they see their gains in full almost entirely pared back, even before a first test of  the $0.30 base. It looks like bulls will want to try and reclaim both the 55-day SMA and the 200-day SMA at $0.35 by the time of, or during the weekend.

XLM/USD daily chart

XLM/USD daily chart

If XLM price bulls can get a slight lift from some tailwinds – or as a result of a few headwinds fading– expect a magnified move higher with a breakout above the black ascending trend line. Then Bears will likely get pushed out of their positions  leading to a possible short squeeze up to and against $0.40. From there, a positive spillover effect from other tailwinds in cryptocurrencies might help lift sentiment in Stellar price back up to $0.46.

 


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