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4 Reasons Why XLM Has The Potential For Another 15% Surge!

During the last two weeks, Stellar XLM gained over 35% and is one of the top crypto gainers in June. However, based on our technical analysis, we believe the token has the potential for another 15% upswing. This article will explain why this is the case and how a potential trade setup can look.

Stellar’s Current Orbit: The XLM Market Overview

Stellar Lumens (XLM) is showing promising signs in the crypto market. The token is currently trading at $0.103, marking a modest gain of 0.34% over the last 24 hours. However, the underlying market dynamics seem to suggest a potential bullish movement in the foreseeable future.

The key feature in XLM’s current landscape is its gradual approach toward the resistance level of 0.1166. This pattern is still evolving and, if successful, could steer the token toward a nearly 15% price increase. This would mark a significant uptick from the token’s current trading range. Nonetheless, the timing of this event is hard to pin down and may unfold over the next days or more.

XLMS’ Technical Indicators

To understand XLM’s trajectory, it is crucial to examine the various technical indicators that govern its movement.

Firstly, the trend based on the moving average signals a Short Term, Medium Term, and Long Term Uptrend. Based on the recent surge, XLM broke through all moving averages and traded well above them. Since we all know that “the trend is your friend,” this signals a bullish movement.

On the other hand, the Relative Strength Index (RSI) for XLM is currently overbought — which is not surprising when looking at the recent run and 35% surge.

Interestingly, the Moving Average Convergence Divergence (MACD), a crucial momentum indicator, shows a bullish outlook for XLM. This implies that the momentum could shift towards the bulls, marking a potential reversal of the prevailing downtrend.

Adding to this bullish sentiment is the Ultimate Oscillator indicator, which also signals a bullish phase. Oscillators help identify overbought or oversold conditions, and a bullish signal could indicate an upcoming rally.

Lastly, the Average Directional Index (ADX) for XLM is strong. The ADX measures the strength of a trend, and a strong ADX suggests that the current trend, whether bearish or bullish, could persist.

Stellar XLM — Price Chart 28th June 2023
Stellar XLM — Price Chart 28th June 2023

XLM’s Trade Setup & Outlook

Since the technical indicators (except for the RSI) show strong bullish signs, we do expect a continuation of XLM’s current trend. The primary determinant of this outcome would be how XLM interacts with the resistance level of 0.1166. A successful test of this level could unlock the 15% gain, although the path may see several fluctuations along the way.

However, the overbought RSI holds a huge potential for a short-term retracement. Therefore, a potential trade setup can include opening a long position at $0.095.

About Stellar (XLM)

Stellar Lumens (XLM) is the native cryptocurrency of the Stellar network, a platform designed to enable fast, low-cost international transactions. It serves as a bridge currency for cross-border transfers and aims to promote financial inclusion globally.

Benjamin
Benjamin
http://cryptoknowledge.info
Hey, I'm Benjamin — founder of CryptoKnowledge.info. I've been in the crypto jungle since 2019 and (personally) experienced many ups and downs. I tried different strategies, joined paid groups, and explored the darkest parts of DeFi. Today, I know that there is neither a get-rich-quick-path nor a holy grail. On the contrary, I learned that the most important aspect is patience. Cryptoknowledge.info represents the platform I would have loved to discover when starting my crypto journey. We're trying to provide high-quality and non-spammy information — mainly free of charge. I sincerely hope you can gather some value out of the content and it helps you to accelerate your crypto journey!

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