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Stellar Price Analysis: XLM/USD bulls bumped into weekly SMA50

  • XLM/USD is the growth leader of the day out of top-20 coins.
  • The long-term picture implies further growth.
  • The price may retreat to $0.0550 before another recovery attempt.

Stellar (XLM) is the best-performing digital asset out of top-20 on Tuesday. During early Asian hours, XLM/USD hit the highest level in two months at $0.0714 and retreated to  $0.0691 by press time. Despite the downside correction, the coin has gained over 11% in the recent 24 hours. Stellar has a market value of $1.4 billion and takes the 11th place in the global cryptocurrency rating. 

XLM/USD hits weekly SMA50

On the long-term charts, XLM/USD has reached a critical resistance level created by a psychological $0.0700. This barrier is reinforced by weekly SMA50, which makes it a hard nut to crack for the bulls. XLM/USD has been trading below this MA since the end of November 2018, thus a sustainable move above this area will improve the technical picture dramatically and bring $0.1000 into focus, followed by weekly SMA100 at $0.1192. While these levels may seem like a distant dream, an upward-looking RSI on a weekly chart implies that the bull is ready for a major assault.

XLM/USD weekly chart

Meanwhile. on the intraday charts, the coin is overbought with 1-hour RSI reversed to the downside. It means that the price may retest the support before it resumes the growth. The first important area is created by a combination of 1-hour SMA50 and SMA100 on approach to $0.0630. This barrier is followed by psychological $0.0600. Once it is out of the way, the sell-pff is likely to gain traction with the next focus on 1-hour SMA200 at $0.0580. Bullish trend is intact as long as the price stays above $0.0550 (a confluence of daily SMA100 and SMA200).

XLM/USD 1-hour chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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