- 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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