Stellar Price Analysis: XLM/USD explodes over 10%, the focus shifts to $0.06

Stellar price soared to new April highs on Wednesday following a bounce from the moving average confluence where the 50 SMA and the 100 SMA converged in the 4-hour range around $0.04920. Before the breakout, XLM/USD was trending higher, although gradually within an ascending channel. The channel resistance has been tested but it is yet to be conquered.

The price surged over 10%, stepping above the resistance at $0.0550. While the momentum slowed down at the triangle resistance, buyers still have their eyes glued in $0.0600. Meanwhile, Stellar has a market value of $0.05667 and is in the hands of the bulls.

The RSI in the same 4-hour range has entered the overbought region. Besides, the indicator is heading higher inside the overbought region as a show of strength from the bulls. The same bullish prowess is emphasized by the MACD, currently moving higher in the positive territory. A bullish divergence from the indicator shows that Stellar is primed to make higher movements likely to rise above $0.0600.

In the event of a reversal, initial support has been highlighted at $0.0550. Other key support areas include the 50 SMA and the 100 SMA as well as the ascending channel support.

XLM/USD 4-hour chart