Stellar Lumens Value Evaluation: April fifth

Stellar Lumens has a YTD performance of + 273.5%, and especially since mid-November, Stellar Lumens has seen strong uptrends, followed by a consolidation. A few days ago the news came that Grayscale had added more than 5.5 million XLM coins to its inventory.

On the charts, XLM has been in another phase of consolidation, but its surge above $ 0.458 in the past few hours has opened the possibility that XLM is on the verge of another strong uptrend.

Stellar Lumens 12 hour chart

Source: XLM / USD on TradingView

The fall from $ 0.6 to $ 0.314 in February was used to represent the Fibonacci retracement values ​​(cyan). The values ​​of 50% and 61.8% at $ 0.437 and $ 0.472, respectively, were particularly significant in March.

In the last few hours of trading, XLM exceeded the $ 0.458 mark. The last trading session for the analyzed timeframe has not yet ended. However, technical indicators showed an optimistic picture for XLM.

There is a supply zone just below the 50% level and XLM bulls have been turned away in this area several times in the past six weeks. That rise above this region at $ 0.44 is a bullish development and a small drop to $ 0.458 or $ 0.44 should be viewed as a buying opportunity.

argumentation

The main reason is the heavy movement of XLM over the service area. The trading session would be bullish if it closes above $ 0.44 and even more so if it creates a closing price above $ 0.458. This would indicate that the cops were firmly in the driver’s seat.

The RSI did not fall below the neutral 50 and hit 67 again, showing that the upward momentum was still undiminished. The OBV was also in a steady upward trend, underscoring the demand behind the XLM rally.

The 20-period EMA (white) moved above the 50-EMA (yellow) to show an uptrend and the 50-EMA can serve as support as well.

Conclusion

A revisit at $ 0.458 or even $ 0.44 could be seen in the coming days. These two levels can be used to scale into a long position with a stop loss of $ 0.42 or lower below the 50 EMA of $ 0.409. Given the likelihood that XLM will move towards $ 0.6 in the coming weeks, a larger stop loss of $ 0.4 would still be a good risk / reward for this trade.

Sign up for our Newsletter

Comments are closed.