- XLM price looks ready for a move higher as it bounces off the $0.35 support level for the third time.
- The triple tap setup suggests a move to $0.40 in a conservative scenario and $0.42 in an optimistic outlook.
- A breakdown of the range low at $0.32 will invalidate the bullish thesis.
XLM price has dropped sharply after failing to slice through a crucial resistance level on the daily time frame. The recent drop is the last piece needed to complete a bottom reversal pattern, suggesting investors can expect Stellar to make a comeback.
XLM price to make a comeback
XLM price failed to break above the $0.42 barrier three times over the past month. The recent failure on November 10 led to a 20% downswing and created a swing low at $0.35, which is the third consecutive low since October 30.
The 4-hour price chart is now showing that the remittance token has formed a triple tap setup, also known as a bottom reversal technical formation. Market participants can now expect XLM price to reverse and make a run to the immediate barriers.
The 50% retracement level at $0.37 is the first hurdle Stellar will encounter on the way up. Clearing this level will push it toward $0.40, constituting a 13% advance. In a very bullish case, the upswing could overextend towards $0.42.
While further gains are possible, the short-term bullish outlook is capped at $0.45. Investors should expect a decent correction after XLM price retests $0.42 or $0.45.
Another scenario that traders should expect is a retest of the demand zone, ranging from $0.33 to $0.34 before the reversal occurs.
XLM/USDT 4-hour chart
While things are looking up for XLM price, a breakdown of the said demand zone at $0.33 will create a lower low and invalidate the bullish thesis. In this situation, Stellar will likely revisit the range low at $0.30.
XLM Spikes 10% as Stellar CEO Is Set to Testify at Full Committee Hearing
The CEO of Stellar Foundation, Denelle Dixon, will testify as a witness at a hybrid hearing on Dec. 8
Denelle Dixon, CEO of Stellar Development Foundation, is set to testify at a full committee hearing. The price of XLM, Stellar’s native crypto asset, is up 10% in the last 24 hours.
The Stellar CEO, in her words, “feels honored to testify at next week’s full committee hearing on digital assets and the future of finance.” Representative Maxine Waters, Chairwoman of the House Committee on Financial Services, made the announcement. On Dec. 8, the full committee will have a hybrid hearing.
In a recent release, Representative Maxine Waters, chairwoman of the U.S. House Committee on Financial Services, has invited cryptocurrency CEOs to testify at a scheduled hearing on “Digital Assets and the Future of Finance.” Jeremy Allaire, CEO of Circle Pay, Sam Bankman-Fried, CEO of US FTX Exchange, Brian Brooks, CEO of Bitfury Group, Chad Cascarilla, CEO of Paxos Global, and Denelle Dixon, CEO of Stellar Foundation, will testify as witnesses in the Dec. 8 hybrid hearing.
Stellar (XLM) traded in an indecisive trend for most of November. However, bulls suddenly reemerged, leading to a retest of the $0.36 high on Dec. 3. Litemint, a longtime ecosystem participant, launched its non-fungible token (NFT) marketplace, enabling users to mint NFTs on Stellar.
XLM was trading at $0.358 as of press time.
XLM price at a critical juncture amid impending golden cross
- XLM/USD challenges critical daily support line, a rebound on the cards?
- A Forexsuggest study cites Stellar as the most environmentally-friendly cryptocurrency
- RSI stays bullish while a golden cross could be in the offing.
Stellar Lumens (XLM/USD) maintains its bearish momentum starting out a fresh week on Sunday, although hovers within Friday’s trading range between $0.40-$0.36.
In doing so, XLM price is posing a 1.50% loss to trade at $0.3730, awaiting a strong catalyst for the next big move.
Stellar price could receive the much-needed impetus from a research study conducted by Forexsuggest, which reveals that the most environmentally-friendly cryptocurrency is Stellar, a competitor to Ripple that requires just 0.00003KWh per transaction, which is barely a third of what IOTA requires.
Stellar needs 0.00072 oz of CO2 per transaction, which is almost nothing when compared to Bitcoin’s 1,060.5 lbs per transaction.
How is XLM price positioned on the technical graph?
Looking at Stellar Lumen’s daily chart, XLM price has been testing the bullish commitments at the horizontal 21-Daily Moving Average (DMA) over the past week.
This Sunday, the 21-DMA coincides with the rising trendline support, connecting the higher lows since October 27. That powerful line of defense awaits at $0.3710.
A daily closing below the latter will offer extra zest to XLM bears, as they would look to extend the recent downtrend towards the horizontal 200-DMA at $0.3568. The upward-sloping 50-DMA closes in on that point.
Further south, the mildly bullish 100-DMA at $0.3455 will come into play.
XLM/USD: Daily chart
However, with the 50-DMA looking to cross the 200-DMA for the upside, XLM buyers are weighing in their chances, at the moment.
If the above materializes on a daily closing basis, then a golden cross will be confirmed, flashing a strong bullish signal.
A rebound towards the five-month highs of $0.4436 cannot be ruled out. Ahead of that the $0.40 psychological magnate could impede the road to recovery.
The 14-day Relative Strength Index (RSI) points south but still trends above the central line, adding credence to the bullish potential.
XLM buyers frustrated as Stellar fizzles out
- XLM price faces another rejection against the $0.41 value area.
- Despite multiple bullish attempts to break out above $0.41, sellers slap XLM lower.
- Hidden bullish development on the Point and Figure chart may destroy short sellers.
XLM price has been a frustrating instrument for any long-term investor or short-term speculator. It’s hard to believe and even harder to remember, but XLM has not made a new all-time high since 2018! Psychologically, bulls have been trolled throughout October – but the joke may soon be on the bears.
XLM price action may play a trick on the bears this Halloween, bringing treats for the bulls
XLM price may trick any bears that believe XLM is ready for another bearish breakdown lower. While the candlestick chart and Ichimoku system show continued rejection higher, the $0.01/3-box Reversal Point and Figure chart shows a sort of hidden bullish setup that isn’t seen on a candlestick chart.
The red diagonal line on the Point and Figure chart below is the previous bear market trendline. Quick note: In Point and Figure charts and analysis, an instrument is always in a bull market or bear market. That bear market trendline was broken when the most recent X-column broke above it at $0.41. However, bears then took over and pushed XLM lower to create a double bottom and then a sell entry one box below at $0.32 – but that’s where XLM price stopped.
XLM/USD $0.01/3-box Reversal Point and Figure Chart
Because XLM price broke the bear trend angle, the market has converted into a bull market. The hypothetical long trade setup is a buy stop at the 3-box reversal ($0.36 at the time of publishing) with a 4-box stop loss and an optional 3-box trailing stop. The projected profit target from that entry is $0.55.
The current long setup can only be invalidated if a new low below $0.20 develops in the current O-column.