- XLM price action has been on the ascent since the correction on September 7.
- Buyers are showing themselves in the price action with higher lows and higher highs.
- Price action squeezed against the descending side of the triangle looks ready for the breakout to the upside.
Stellar (XLM) is making a solid partial recovery and looks to fully recover from the crash on September 7. Price action has already recovered 50%, and bulls are charging for recovering the other half. Although still stuck in a bearish triangle, bulls are flocking together for the overhaul.
XLM price is grouping and building momentum
Stellar’s recovery has been a quick one. On September 8, already a third was recovered in the opening of that trading session after XLM had shed 37% of its value. Since then, buyers could count on the $0.30 level that originates from June 20 and has shown its importance on several occasions on both the downside and the upside. It looks to be in play again in the price action for Stellar. Buyers scooped up XLM in two solid tests of support at $0.30. Since then, XLM is slowly but surely trading higher with higher lows and higher highs.
In its way, for now, is the red descending trend line from September 10. Bulls got rejected at session’s high that day, and price action bounced off the green ascending trend line. This way, a bearish triangle is formed with a $0.30 support level as the base and the red descending trend line on the descending side. Price action is getting brushed against the descending side and looks ready for the pop higher.
XLM/USD daily chart
Expect Stellar after the break to go for a retest of the green ascending trend line. As that line already showed its resistance, expect sellers to stand ready to block any attempts from bulls to break above it, though sellers might be in a bit of trouble there. As that green ascending trend line is not that far off $0.41, expect bulls not to book any profits until they reach that level. This will wash out any sellers and clear the path for $0.41, even $0.42 in a quick hit-and-run.
Should sentiment roll over in the markets for Stellar and turn toward risk-off, expect a trend down toward $0.30. Sellers will squeeze buyers out of their longs and go for a run of the stops buyers placed below $0.30. Once that happens, buyers will not be present until $0.26, where the monthly S1 support level is yet to prove its support and importance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.