Stellar Price Analysis: XLM/USD bulls may return to $0.0800 after a short break

Stellar (XLM), the 14th largest digital asset, has gained over 10% of its value in the recent 24 hours to trade at $0.0791, at the time of writing. The coin has been growing rapidly since the start of the week and increased by over 16% on a week-on-week basis. XLM/USD bottomed at $0.0590 on June 27 and has been moving upwards ever since. 

As the fundamental catalysts behind the move are not easily identifiable, the market is driven by technical and speculative factors. Also, improved sentiments across the market are fuelling the ascent. 

XLM/USD: Technical picture

On the intraday chart, XLM/USD stopped within a whisker of $0.0800. A strong resistance created by a thick layer of orders clustered on approach to the psychological level triggered the correction and pushed the price to $0.0790. The local support is created by the middle line of the 1-hour Bollinger Band at $0.0750. If it is broken, the sell-off may be extended to $0.7000. This barrier is reinforced by 1-hour SMA100 and closely followed by 1-hour SMA200 at $0.0680.

The RSI on the intraday charts has reversed to the downside, ready to exit the overbought territory. It means that the coin may extend the downside correction towards the above-mentioned support areas before a new attempt to break above $0.0800.

On the upside, once $0.0800 is out of the way, the next resistance of $0.0863 will come into focus. This is the previous recovery high and the highest level since June 4. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.0900.

XLM/USD 1-hour chart