- XLM price opens above $0.28, turning the historical level from resistance into support.
- Price action makes new highs, confirming the rally.
- Expect a test and break above $0.30, with $0.32 as the profit target level.
Stellar (XLM) price has opened today above $0.28, which shows that bulls are trying to push the trend higher. The Relative Strength Index (RSI) is confirming the high demand with a move above 50 but still holds plenty of upside potential. The price target looks to be set at $0.32, where both the 55-day and 200-day Simple Moving Average (SMA) form a double cap.
Stellar sees bulls squeezing out the last remaining profit in the current rally
XLM price action has seen investors enjoying the Christmas rally, after returning a 20% profit since December 21. But bulls are not happy enough with what they have on the table and are looking to squeeze out another 7% to 10% of gains if they can break above $0.30. As XLM price already firmly opened above $0.28, this level has now become support and should the first attempt to break $0.30 fail it could offer an entry to new bulls if retested.
Further upside looks a little muted as both the 55-day and the 200-day SMA provide resistance at $32. Together, these two elements can weigh on any further upside potential and could provide a ceiling. A deciding factor could be how much room the RSI still has to go before hitting the overbought area, and whether it is enough for price to break above that level, but all-in-all 10% of gains are still possible.
XLM/USD daily chart
The risk to the downside is that bulls might get rejected at $0.30 and that the support at $0.28 does not hold. If that is the case, there is a risk of a complete collapse of the price action,bringing XLM price back down to $0.25 at the purple flat line. Even a further dip towards $0.24 or $0.21 is not unthinkable if global markets take a turn for the worse and go fully risk-off.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.