- Stellar price action made a 30% rally in just one week.
- The bull run is taking a breather with support at $0.30.
- The current back foot in global markets opens the door for additional long XLM price action.
Stellar (XLM) has made a stunning recovery with not only 30% gains but also breaking out of the downtrend's chains. Price action in XLM is now firmly consolidated above $0.30. With the price action taking a breather in XLM, the window is there for bulls to add some more.
XLM price offers another 34% upside to bulls who buy the dip
XLM spent quite some time at $0.25 with several tests and attempts from bears to push price action further lower toward $0.19. After three failed attempts, bulls saw the moment fit to overhaul the bears and ramped prices up an easy 30%. In that rally, a few key support levels got overtaken and have now turned into support in favor of XLM bulls.
XLM price bulls can count on $0.28, which originated from the high on September 30 and acted as support on October 4 due to the rejection of the monthly pivot. Bulls charged beyond that point, and thanks to the $0.28 holding firm the price has now consolidated above $0.30. Bulls are facing some headwinds from two elements though.
XLM/USD daily chart
The monthly pivot at $0.32 proves to be a tough nut to crack with already five failed attempts to get price action above there. Add that 55-day Simple Moving Average (SMA) coming in just above, near $0.33, and bulls are facing a double cap on the price action in XLM. A break above would bring bulls towards the 200-day SMA at $0.38.
As markets are already on the back foot, another down day would spell a retest of $0.30 and $0.28. Once through this support range, expect an attempt from bears to reinstall the bear trend below the purple descending trend line toward $0.25.
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