The bullish rally for XLM price started in March when the price started to rise from the low of $0.0760 to form a high at $0.1146. The bears did not find the price justifiable above $0.11, triggering a drop in the price. Since then, the price has entered into a consolidation phase and is breaking out in a downward direction.
Recently, XLM price entered a consolidation zone ranging between $0.0860 and $0.0925. At the start of June, the cryptocurrency price after reaching resistance level of $0.0925, gained enough bearish momentum to shatter the support level of $0.086 level which led to breakout in the downward direction.
Currently, XLM price has formed a support at $0.076 and experienced increased participation of buyers. Price is currently headed toward the immediate resistance level of $0.082. XLM price has reached the march lows from where the bullish rally began.
For XLM price to regain investors interest, it needs to rise above $0.096 level for targeting the annual high. If the bears can shatter the recent support of $0.0760, there is a possibility for the price to fall toward the yearly low of $0.0709.
Will XLM Price Bounce Back From Losses?
The Chaikin money flow score of XLM is -0.02 suggesting weakness in the market. CMF has been above the 0 mark since the start of June and has finally crossed negatively. XLM price is trading below 20,50,100 and 200-Day EMAs indicating bearish momentum in the price.
The price has reached the lower band of bollinger and started to rise. The 20-day SMA of Bollinger resides near the $0.086 level and there is a chance that the XLM price might receive resistance from the same. RSI has started to rise after touching the oversold zone indicating increased participation of buyers in the market.
RSI trades at 38.94, still inhabiting the selling zone. The long/short ratio is 1.02 with 50.59% longs and 59.41% shorts indicating a slight bullishness in the market. As bitcoin and ethereum are gaining bullish momentum, the altcoins have also started to follow their steps.
Conclusion
The market structure and price action of Stellar price has turned bullish after hitting the march low. The technical parameters are still indicating bearish momentum in the price. There is an increased participation of buyers to protect price from further downfall. XLM price needs to rise above $0.096 level to gain investors interest and for retesting the annual high.
Technical Levels
Major support: $0.0760 and $0.0709
Major resistance: $0.0860 and $0.0960
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/18/stellar-price-prediction-xlm-price-bounces-off-march-lows/