Stellar Price Analysis: XLM Price Flips Massively Bullish as Trajectory to $1 Becomes Clear

Last Updated July 23rd 2021
2 Min Read
  • Stellar lift from support provided by the 50 SMA and closes the gap to $0.7.
  • Technical levels indicate that XLM’s slightest resistance path is upward.
  • Stellar assumed a bullish outlook during the weekend session, whereby the 50 Simple Moving Average (SMA) on the four-hour chart allowed bulls to focus levels toward $1. The cross-border value transfer token has been bolstered above $0.6 and is currently closing the gap heading to $0.7. A confirmed break above $0.7 may trigger massive buy ordered as buyers speculate the ultimate rise to $1

    Stellar bulls firmly nurture the uptrend

    The four-hour chart brings to light a vivid ascending parallel channel. Following the recent rejection at the channel’s upper boundary, Staller embraced support at the 50 SMA, as mentioned. Buying pressure increased as buyers streamed into the market from the sidelines. XLM pulled above the middle boundary, allowing bulls to focus on gains to $0.7 and $1.

    In the meantime, the bullish outlook has been validated by the Moving Average Convergence Divergence (MACD) indicator. Besides bouncing off the mean line (0.00) support, the MACD line (blue) has crossed above the signal line, reinforcing the bullish grip.

    XLM/USD four-hour chart

     XLM/USD 4-hour chart 051021

    According to the SuperTrend indicator on the four-hour chart, the bullish outlook is intact, and the situation may remain unchanged in the coming sessions. This indicator tracks the momentum of an asset and helps investors identify positions to buy to the dip and sell the top. A sell signal was ignored on May 5 but the indicator has been bullish ever since.

    XLM/USD four-hour chart

     XLM/USD 4-hour chart 051021

    Looking at the other side of the picture

    The TD Sequential indicator is likely to flash a sell signal on the two-hour chart in the next few hours. This call to sell is expected in a green nine candlestick. It may be validated when the eighth and ninth candlesticks close higher than the sixth and seventh.

    XLM/USD two-hour chart

     XLM/USD 2-hour chart 051021

    It is essential to realize that a sell signal indicates that the bullish outlook is gradually losing momentum, and bears are preparing to come in with a bang. Therefore, it calls for caution when trading market a sell signal by the TD Sequential indicator.

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