• XLM price remains a leader in the cryptocurrency space, but its price action lags its peers.
  • Daily price action remains below the Cloud and has yet to return to any lengthily period inside the Cloud.
  • XLM upside potential significantly outweighs any near-term corrective move.

XLM price action has certainly been a disappointment to its supporters. Considering that cryptocurrencies like Dogecoin-killer Shiba Inu have rallied over 60% and Bitcoin itself over 20%, it is easy to see why XLM bulls are frustrated. The frustration is even stronger when you consider that XLM hasn’t made a new all-time high since January 3rd, 2018.

XLM price is laggard amongst its peers – and that represents an opportunity

XLM price appears to be stuck. But, in many ways, its price action indicates what you would likely see in a small-cap or micro-cap biotech stock that is slowly being accumulated – frustrating in the near term but bullish for the future. The accumulation will eventually break out and generate some substantial gains for XLM.

From a technical perspective, XLM needs to close above the Cloud with the Chikou Span above the candlesticks (ideally, also above the Cloud). This can occur if XLM price has a close at or above $0.35. From $0.35, a launching point could be established to propel XLM higher to at least the May 16th swing high at $0.79. Ideally, XLM would continue and finally catch up to the rest of the market and create new all-time highs above $0.92.

XLM/USDT Daily Ichimoku Chart

However, the bullish scenario may not have time to play out and could easily be invalidated. The Optex Bands are already trading at extremes, and there is some minor hidden bearish divergence between the XLM price candlestick chart and the Composite Index. Additionally, the first oversold condition in a bear market of 55 in the Relative Strength Index shows imminent weakness. These oscillator levels appear as XLM faces resistance against the bottom of the Cloud (Senkou Span B) – a warning that lower prices could occur at any time.


Like this article? Help us with some feedback by answering this survey:

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Cryptocurrency exchanges are on board Terra’s LUNA hard fork and Do Kwon’s plan for the Terraform Labs token’s rebirth. Do Kwon has garnered support from leading cryptocurrency exchanges for the new Terra chain. 

More Terra News

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Ethereum dipped below the $1,900 support level over the past few hours. A decisive close below such a vital demand zone will put ETH at risk of a 38% correction toward $1,200. 

More Ethereum News

A big price move is coming for Binance Coin; here’s what to look out for

A big price move is coming for Binance Coin; here’s what to look out for

A brief technical and on-chain analysis on Binance Coin price. Here, FXStreet's analysts evaluate where BNB could be heading next. 

More Binance Coin News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Bitcoin price, Ethereum and other cryptocurrencies are stabilising after the cryptocurrency space got slaughtered last week and two weeks ago.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP