Stellar (XLM) Skyrockets, Why Break Above $0.20 Seems Likely

Stellar (XLM) rose over 70% in the last three sessions, breaking the $ 0.1800 resistance against the US dollar. The XLM price should continue to rise towards $ 0.2000 or $ 0.2200.

  • There was a strong upside move above the $ 0.1500 resistance against the US dollar.
  • The price cleared many hurdles near $ 0.1650 and was well above the 100-day simple moving average.
  • On the daily chart of the XLM / USD pair (data source from Coinbase) there was a break above a critical contraction triangle with resistance near USD 0.0882.
  • The pair should continue to climb towards $ 0.2000 and $ 0.2200 as long as it is above $ 0.1650.

Stellar (XLM) is up 70%

There has been a sharp surge in Bitcoin, Ethereum and ripple in the past few days. As a result, stellar (XLM) also formed strong support near $ 0.0700 before starting a fresh surge against the US dollar.

To start a sharp rise, there was a break above a critical contraction triangle with resistance near USD 0.0882 on the daily chart for the XLM / USD pair. The pair gained pace above the $ 0.1000 and $ 0.1200 resistance levels.

The price rose above the $ 0.1500 level and the 100-day simple moving average. It even surpassed the $ 0.1800 level to hit a new multi-month high at $ 0.1952. Stellar’s XLM price is currently correcting lower and trading below $ 0.1900.

Source: XLMUSD on TradingView.com

Initial support is near the $ 0.1800 level. The first major support is near the Fib retracement level at 23.6% of the recent surge from $ 0.0725 to $ 0.1952.

A bigger drop could see the price drop back to the $ 0.1350 level. It is close to the 50% fib retracement level of the recent spike from $ 0.0725 to $ 0.1952. Further losses could lead the Pri towards the USD 0.1200 support zone (the most recent breakout zone).

Further advantages in XLM

If the XLM price continues to rise, there is a possibility of further upward movement above $ 0.1900. The next key resistance is near the $ 0.1950 level followed by $ 0.2000.

A sharp break above the $ 0.2000 resistance level could potentially open the doors to further gains above $ 0.2050. The next big hurdle for the bulls could be near the $ 0.2200 level.

Technical indicators

Daily MACD – The MACD for XLM / USD is heavily placed in the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for XLM / USD is currently in the overbought zone.

Key support levels – $ 0.1700, $ 0.1650, and $ 0.1600.

Main Resistance Levels – $ 0.1900, $ 0.1950, and $ 0.2000.

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