Stella Lumens Price Analysis: A Breakthrough is Close for XLM/USD as Bulls Penetrate Key Resistance
- XLM/USD has been knocking on the door of key resistance for the past seven sessions.
- Still no official confirmation on the rumors surrounding Fidelity and the use of the Stellar blockchain.
The XLM/USD bulls have been asking many questions over the few days. Vital resistance is consistently being tested. This is part of a triangular pattern that was formed back earlier this year in July. Price action has been contained within this, failing to breakout in either direction. Given the recent behavior, it would suggest a breach could very well be imminent.
Recent Stellar-Related News Flow
In a recent interview by YouTuber ‘CryptoTips’, Fundstrat’s Tom Lee commented on Stellar Lumens and other cryptocurrencies. He said, “Year-to-date only three tokens have had an increase in daily active users, what we call daily active addresses, which is Stellar Lumens, EOS and Dogecoin. And they’re the three best-performing tokens this year.”
Elsewhere, as reported a few days ago, by Hacked’s Sam Bourgi, there were some rumors circulating. It was suggested that Fidelity may be turning towards the Stellar blockchain. This supposedly being conserved to move digital assets on their respective platform. As of today, there still has not been any official confirmation from either Fidelity or the Stellar foundation on these rumors.
Technical Review – Daily Chart
XLM/USD is toying with a complete game-changing area of resistance. This can be seen around the $0.25 territory. Going on to 7 sessions now, price action has been magnetized to the above descending trend line. Given the length of time that this has contained the price, a breakout could very much be of some size and momentum.
In terms of upside targets, should the pattern be cleared by the bulls, a decent move up to $0.30 territory would be probable. The price last traded here on 23rd September, which was short-lived, with a large upper wick candlestick. Furthermore, eyes would be on $0.35, where the next area of supply is sitting. Bulls last ran the price up to these levels on 25th July, before entering a chunky bear market and dropping around 45%.
Despite all the recent positive fundamentals for the Stellar foundation, a bearish outcome for the price should not be ruled out. The current pattern set up observed, could also be perceived as a bearish pennant, subject to a breakout south. Support seen just below the $0.20 figure, with further demand tracking below within the $0.18 territory.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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