Stellar Lumens Price Analysis: XLM/USD Surges 35% Over Eight Days; First Big Barrier Being Broken Down by Bulls

  • XLM/USD bulls are enjoying a consecutive run of gains seen over the last eight sessions.
  • CCN has reported that Coinbase Pro will now be supporting Stellar Lumens (XLM) on its platform.

XLM/USD: Recent Price Behavior

The Stellar Lumens price has been storming higher over the past eight sessions, as it meets its first major barrier. In the mentioned period, XLM/USD has gained a whopping 35%, pushing to the highest levels seen since 19th January and not far off the 2019 high. The price was contained within a descending wedge pattern formation for around 13 weeks going back from early December 2018. Given the extent of time that XLM was forced to trade within that range, the explosive breakout wasn’t too much of a surprise.

It is worth considering that the price is back on the mend for a recovery. XLM/USD has been rallying consecutively for the past six weeks after the price printed a low of $0.07355000. In terms of this current run, it is the best seen since June-July 2018. The run has been very much aggressive within a short space of time; as such, caution must be taken into consideration. In cases such as the jump see with XLM, the price then tends to be vulnerable to downside risks. A correction or a small pullback could come into action before further stronger moves north.

Coinbase Pro Supports Stellar Lumens

As reported by the CCN team, Coinbase Pro, the professional solution of the largest U.S-based crypto exchange, has announced its support for Stellar Lumens. This was confirmed via blog post on 13th March.

Coinbase Pro is now accepting deposits of XLM for around 12 hours, a well-known onboarding process before the platform enable full trading. Coinbase detailed that after establishing enough supply of XLM, it will open trading pairs in USD, EUR and Bitcoin (BTC) in phases.

The exchange noted that there would be three stages ahead before full trading of XLM is operational. The stages involve “transfer-only,” “post-only,” and “limit-only.” The first two stages will facilitate users to transact XLM to Coinbase Pro accounts and post limit orders. Lastly, the other stage will allow customers to match limit orders.

Technical Review – XLM/USD

XLM/USD daily chart.

Momentum is very much behind the bulls at present with the run north. Eyes are on the first zone of potential resistance, where the price is currently trading at the time of writing. The noted area is observed from $0.109500000 up to $0.116000000. XLM/USD last failed to break this area down between 11-20th January, where the price then went on to print the low of $0.07355000.

Should the bulls manage to break this zone down, then another wave of buying pressure could follow. The further target north would be where the price at the back-end of December 2018 faltered. It can be observed tracking from $0.13000000 to $0.1400000. Finally, $0.18000000 is the next likely area of interest, as price last traded up here the back-end of November and into early December 2018.

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.

 Featured image courtesy of Shutterstock.            

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.