Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The market structure was strongly bullish on the higher time frames. There was a fair value gap below and above the price.
Bitcoin [BTC] trended up over the past week, reaching as high as $21.5k before hitting a significant number of sellers. While the market’s long-term trend was downward, Bitcoin undoubtedly had massive bullish momentum after breaking above the USD 17.8k level.
Read Stellar Lumens’ [XLM] Price Forecast 2023-24
The altcoin market also saw capital pouring in, and Stellar Lumens [XLM] quoted gains of 25% in the past ten days. The price charts showed that another upward move was likely, although buyers can wait for a pullback to an area of interest.
A dip to the $0.083 zone would be welcomed by buyers due to Fibonacci levels
Based on the move up from $0.071 to $0.09, a series of Fibonacci retracement levels were plotted. The 38.2% retracement level sat at $0.083, with also a significant support level at $0.082. In addition, a fair value gap (accentuated by the white box) was also established in this zone.
Therefore, bullish market participants may look for a pullback in this zone to buy XLM. The confluence of multiple support zones suggested that the odds of an increase in prices from this area were good. The lower timeframe charts showed that the $0.082-$0.085 areas saw some consolidation in mid-December.
Once again, this marked the zone as an area of interest.
How much are 100 XLM worth today?
In the north, the daily chart showed major inefficiency lagging the $0.1-$0.108 charts. Bulls can make a profit on a 50% fill of this FVG for $0.104. The 61.8% extension level at $0.1022 can also be used to take profits. In addition, the RSI and OBV posted large gains, indicating significant bullish pressure.
The rising Open Interest was proof of an optimistic conviction
In January, the Open Interest metric has been steadily ticking up. This showed that money has flowed into the market. While we don’t know how many positions were long or short, it was enough to conclude that rising prices and OI indicated bullish intent.
However, unlike the OBV, spot CVD has fallen behind Stellar Lumens. Although the price went up, the conclusion was continued selling pressure. Could this mean that a turnaround was imminent? A daily session below USD 0.081 can be taken as a debunk of the bullish idea above.
This post Will Stellar Lumens [XLM] have a decent pullback before pumping to the $0.1 mark? decrypt…
was published first on https://ambcrypto.com/will-stellar-lumens-xlm-have-a-decent-pullback-before-pumping-toward-the-0-1-mark-decoding/