• XLM/USD set to test the key horizontal trendline resistance near $0.435.
  • Stellar price advances within ascending triangle formation on the 1D chart.
  • Bullish RSI and crossover suggest the more gains remain in the offing.

Stellar Lumens (XLM/USD) is consolidating its latest rally to nine-day highs of $0.397 on Sunday, as bulls await a fresh impetus for the next leg higher.

XLM price is resuming the recovery momentum from two-week troughs of $0.309, snapping Saturday’s brief pullback.

Stellar price is higher by 6% on the day, currently trading at $0.3820, shrugging off the mixed performance across the crypto market.

Stellar’s path of least resistance remains to the upside

As overserved on Stellar Lumen’s daily chart, XLM price has been trading within an ascending triangle formation since topping out at $0.439 on September 6.

XLM price eyes a bullish breakout from the triangle, as it rallies hard towards the horizontal trendline resistance at $0.439, which has charted a double top.

A massive upsurge towards $0.625 cannot be ruled if XLM price yields a daily closing above the aforesaid critical upside barrier, confirming the ascending triangle breakout.

The Relative Strength Index (RSI) has cut the midline from below, currently pointing north at 56.60. This suggests that there remains more room for the upside for XLM bulls.

A bull cross, represented by the 21- Daily Moving Average (DMA) having crossed the 200-DMA from below, adds credence to the probable upswing.

Ahead of the pattern target mentioned above, the $0.50 psychological magnate could challenge the bearish commitments.

XLM/USD: Daily chart

Alternatively, the confluence of the 21 and 200-DMAs around $0.367 could come to the immediate rescue of XLM bulls.

If the sell-off deepens, then XLM price could fall further towards $0.330, where the upward-sloping 50 and 100-DMAs coincide.

A sustained break below that confluence cushion will expose the rising trendline (triangle) support at $0.317. That demand area will be the level to beat for XLM bears.


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