Stellar technical analysis: Bulls to face stiff resistances en route 0.0800

Saturday’s bounce gains momentum on bullish pattern confirmation.
But bears continue to guard the topside that likely risks the XLM’s recovery.

The tenth most favorite digital currency, Stellar (XLM/USD), trades firmer for the second straight day on Sunday, emerging as the top gainer across the top ten widely traded cryptocurrencies. The coin exchanges hands near 0.075 region, reporting 4.75% and 6% gains over the last 24 hours and seven days respectively. The cryptocurrency has had a volatile last week, still enjoying the current market value of $1.5 billion or 0.63% of the total cryptocurrency market capitalization.

“On November 5, the Stellar Development Foundation (SDF) burned 55 million XLM tokens worth of $4.6 billion. The team explained the move by the desire to make the network more efficient. The coin skyrocketed by more than 20% on the response”, Tanya Abrosimova,
FXStreet’s Crypto Editor noted.

XLM/USD, 1-hour chart

The coin consolidates near two-day highs of 0.0758 following symmetrical triangle breakout.
The immediate downside could be capped by the bullish hourly 200-Simple Moving Average (HMA) at 0.0736.
The horizontal resistance at 0.0767 is now on the buyers’ radar.
However, the price risks further upside, as the Hourly Relative Strength Index (RSI) moves deeper into the overbought territory.

XLM/USD daily chart

Stellar’s outlook appears bullish, with scope for a test of the horizontal trendline that awaits at 0.0836.
Ahead of the that the 0.0800 round figure will be tested, with daily Relative Strength Index (RSI) heading upwards towards the 50 level.
The upward-sloping 21-DMA at 0.0688 could limit the losses should the coin fail to take out Thursday’s high of 0.0769.

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