Will Buyers Take Stellar Lumen (XLM) Higher?
Aiswarya Gopan • 2 min read
Even though the price action in the overall crypto market seems to be still dominated by bears, one of the altcoins leading its way higher and going against the tide on Friday is Stellar Lumen (XLM). At the time of writing, XLM/USD is trading at around $0.24.
Earlier in the day, Stellar Lumen’s price had spiked above the key $25 level and almost closing in on $26, although it has since eased lower beneath this mark again. It is still up by more than 6% since the previous session.
The bullish moves in the digital asset came on the back of a sharp rise in buy orders when the 50 SMA on the 4-hour chart was breached a few hours ago. However, the market sentiment is still downbeat, indicating that bears are preventing the XLM price from climbing higher in the near-term.
With no significant fundamental development driving price action in Stellar Lumen, the market sentiment towards cryptocurrencies in general is likely to be the main focus area for traders of this altcoin as well. And things don’t look good here just yet – especially with crypto king Bitcoin back below the $32,000 mark, and in line with our previous forecast for a bearish correction.
However, this may present an interesting opportunity to go long on XLM/USD, if buyers wish to take advantage of the weak price at the moment. Take a look at the key levels below to see why this may be a good idea.
Key Levels to Watch
The H4 chart of XLM/USD is sending mixed signals, with the smaller timeframe MAs and the MACD indicator flashing buy. On the other hand, the larger MAs and the momentum indicator are suggesting a bearish bias towards the crypto pair.
The price is sitting right on the pivot point at the moment, making it a good time to keep an eye on the Stellar Lumen coin. A climb higher will see buyers encounter resistance at around $26. On the other hand, if bears dominate, we can see XLM test the immediate support at $0.22 instead.