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The higher market structure and time frame trend favored Stellar Lumens bulls. Some consolidation around the $0.155 support zone was possible the following week.
Bitcoin [BTC] was trading near the lows of a one-month range. Ethereum [ETH] witnessed losses in the past week. Stellar Lumens [XLM] saw its bullish momentum stagnate as a result of these developments.
Read Stellar Lumens’ [XLM] Price Forecast 2023-24
The token was traded within a range (yellow), but there was another way of seeing things. The $0.096 level flipped to support on July 7 and led to the vertical rally. This level has served as resistance since the end of April.
XLM is in a perfect zone to buy, but is the risk high?
The 1-day chart shows the powerful breakout beyond the range (yellow) that Stellar Lumens bulls established earlier this month. On July 13, they also managed to push prices past several higher timeframe highs. The main one was the one XLM registered on May 31, 2022. This was especially important as it represented a lower high in XLM’s downtrend last year.
The increase was supported by high trading volume, showing huge demand and clear bullish intent. Over the past ten days, the bulls have managed to flip the $0.154 level into support. At the time of writing, XLM was trading just above this level.
The structure and trend were bullish after the formation of the higher low at $0.124 on July 17, followed by another step higher. The RSI showed strong bullish momentum and the OBV continued to rise.
The lower time frame chart suggested choppy price action or a pullback was likely
While the higher time frame charts emphasized a healthy bullish outlook, the 1-hour chart showed that XLM could see some consolidation in the coming hours or even days.
Since July 20, outstanding interest has fallen as prices hovered around $0.16. CVD also fell. This showed bearish sentiment over the past three days.
Realistic or not, here is XLM’s market cap in terms of BTC
Therefore, the shorter time frames showed that continued selling pressure was possible. The 1-day chart has indicated support for XLM towards the $0.138 zone, but further losses will reverse the bias to bearish.
This post Stellar Lumens gains another 40% if…
was published first on https://ambcrypto.com/stellar-lumens-to-rally-another-40-as/