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Stellar Lumens price on the verge of a 20% recovery stretch to $0.1

  • Stellar could surge to $0.1 if the support above the 200-day SMA remains intact.
  • The Bollinger Bands on the daily chart suggest that a breakout is in the offing.

Stellar is up over 200% from the March 2020 low despite having retreated significantly from September highs of $0.12. Consolidation engulfed the cryptoasset after support was embraced at $0.067. A breakout seems imminent, with the target on the upside set at $0.1.

Stellar on the verge of an ultimate breakout to $0.1

The Bollinger bands applied to the daily chart show XLM having settled above the middle boundary. Stellar is trading at $0.085, as the bulls work around the clock to kick start a rally towards $0.1. As the constriction of the Bollinger bands gets tighter, a breakout looms. Note that some selling pressure should be anticipated at $0.09 during the mission to $0.1.

XLM/USD price chart

XLM/USD daily chart

Meanwhile, the bullish price action has surpassed all the three simple moving averages; the 50-day SMA, 100-day SMA and 200-day SMA. Settling above the 100 SMA adds credibility to the bullish outlook. Moreover, it is doubtful that a correction will significantly damage the uptrend due to these indexes' support levels.

The Moving Average Convergence Divergence (MACD) has also added weight to the bullish scenario despite its lagging indicator. Settling above the midline is a crucial bullish indicator in addition to the divergence formed above it.

XLM/USD price chart

XLM/USD price chart

It is worth noting that the bullish narrative will be invalidated if Stellar Lumens closes the day below the 100-day SMA. On the other hand, the support provided by two moving averages at the 200 SMA and 50 SMA but be defended at all costs to avert extended losses. The buyer congestion zones that might come in handy in case of extended declines are $0.075 and $0.067.

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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