- Stellar is holding above a robust support zone reinforced by the 200 SMA.
- The MACD indicator on the 4-hour chart suggests bears are getting exhausted as bulls fight to take control.
- A break above the confluence resistance formed by 50 and 100 SMAs will trigger massive buy orders.
- The SuperTrend indicator has a bearish impulse, likely to invalidate the bullish outlook.
Stellar has not been able to recover from the rejection at $0.6, the yearly high. Besides, the acute losses across the market this week were a big blow for the bulls. XLM tumbled to $0.3 before making a recovery above $0.4. As technicals start to improve, Stellar is looking forward to an upswing back to $0.6.
Stellar holds above the critical support area
The recovery from $0.3 was more or less reflex. However, Stellar is holding above the descending parallel channel’s middle layer support. In addition to this, the 200 Simple Moving Average (SMA) on the 4-hour chart is in line to offer support.
Similarly, the Moving Average Convergence Divergence on the same 4-hour chart brings to light the growing bullish outlook. For instance, the MACD line (blue) has broken above the MACD line, suggesting that it is time to buy-in. On the other hand, a break above the 50 SMA and the 100 SMA will pave the way for gains toward $0.6.
XLM/USD 4-hour chart
The TD Sequential indicator has recently flashed a buy signal on the 12-hour chart. This call to buy was presented in a red-nine candlestick. It implies that the bearish pressure is diminishing as buying pressure begins to surge. If validated, XLM will rally in one to four 12-hour candlesticks, validating the bullish narrative.
XLM/USD 12-hour chart
Looking at the other side of the picture
The 12-hour chart shows that Stellar is not out of the woods yet based on the SuperTrend indicator. This bearish impulse came into the picture earlier this week, following massive cryptocurrency price declines. XLM recovery will likely lag in the near term until the indicator flips bullish again.
XLM/USD 12-hour chart
Stellar must also hold above the 20 SMA on the 4-hour chart, if not the channel’s middle boundary support, to avoid potential losses. Trading below these critical levels could open the Pandora box, resulting in losses as far as $0.3.
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.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.