Is Stellar’s XLM price about to go stellar?

In the last 24 hours, Stellar’s XLM token has rallied 25 percent and is now eyeing a huge breakout on the price charts.

According to data from OnChainFX, XLM is changing hands at $0.57, at time of writing.

Compared to last week’s low below $0.30, the cryptocurrency is up by almost 100 percent.

Twenty-four-hour trading volume is at the highest level since Jan. 5, according to CoinMarketCap, and stands well over $0.5 billion.

Indications from the sharp rise in volume show strong hands are at play and the price rally could have momentum.

Furthermore, according to Coin Desk, the individual markets shows that investors are likely using bitcoin (BTC) to accumulate XLM.

For instance, the XLM/BTC pair on Binance is up 18 percent, while volumes have increased by 10 percent.

While XLM is still down 37 percent from its all-time high of $0.9381 set on Jan. 4, the price chart analysis indicates there is scope for a re-test of record highs in the near-term.

XLM chart

The above chart shows:

  • Bull flag pattern: A close today (as per UTC) above $0.525 would confirm an upside breakout.
  • The relative strength index (RSI) has turned higher from a neutral level (50.00), suggesting scope for a rally.
  • Higher lows as indicated by the (blue) ascending trendline.

A bull flag breakout would indicate the pullback from the record highs above $0.90 has ended and the rally from the Dec. 28 low of $0.1774 has resumed.

View

  • A close above $0.525 would open doors for $1.20 (target as per the measured height method – the difference between flag high and low added to breakout price).
  • On the way higher, XLM could face resistance at $0.7415 (Jan. 13 high) and $0.9823 (December high).
  • On the downside, a major bearish move would be seen only if prices drop below $0.39 (Jan. 22 low).