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.
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.
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.
- 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).