Tanya Abrosimova
Independent Analyst
- Stellar (XLM) pushes towards the highest level since September 2019.
- The downside correction may precede another growth attempt.
Stellar (XLM), the 13th largest digital asset, has gone wild on Thursday. The coin hit $0.0990, which is the highest level since September 2019, and dropped to $0.0920 by the time of writing. Despite the sell-off, XLM is the best-performing altcoin out of top-20 with over 21% of gains on a day-to-day basis. Moreover, since the begining of the week, XLM/USD has gained 33%.
XLM/USD: Technical picture
On the intraday chart, XLM/USD stopped within a whisker of $0.1000. However, this psychological resistance strengthened by a thick layer of orders triggered the downside correction and pushed the price to $0.0900. This barrier serves as local support that separates XML from an extended sell-off towards $0.850 reinforced by the middle line of the 1-hour Bollinger Band. If it is broken, $0.8000 and $0.0780 (1-hour SMA50) will come into focus.
The RSI on the intraday charts points 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 test $0.1000.
XLM/USD 1-hour chart
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On the upside, the local resistance is created by $0/0950 ( the upper line of the 1-hour Bollinger Band). Once it is out of the way, XLM may retest the above-mentioned psychological target of $0.1000. The RSI on a daily chart stays on the overbought territory, though there are no clear signals of reversal as of yet.
XLM/USD daily chart
-637298794537555424.png)
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