Stellar Price Analysis: XLM/USD Has a Clear Opportunity for Large Upside
- Stellar’s XLM is maintaining decent upside momentum, running towards its fifth consecutive daily close in the green. Another wave of buying pressure was seen after a breakout from a descending wedge formation.
- Börsenmedien AG, a German-based media company, acquired a stake in a Stellar-based start-up, SatoshiPay.
XLM/USD: Recent Price Behavior
Stellar’s XLM price is currently enjoying a decent run of gains to the upside. XLM/USD has rallied for the past five consecutive sessions, having gained around 25% over that stretch. The price has pushed to its highest level since 20th January, with highs printed on 10th March. A run of daily gains such as the current advance has not been observed since July 2018, as the bulls come back to life. It is also worth noting that the close on Sunday marked a third consecutive weekly gain.
XLM/USD price action was stuck within the confinements of a descending wedge pattern formation for 12 weeks. It was being driven to the south within this structure and printed its all-time-low as well. The bottom hit at $0.0735500 in February before buyers came into play. The lower acting trend line of the above-detailed pattern was also in proximity, providing its assistance in staging a rebound in bullish momentum.
The Reasoning Behind the XLM Pump
Hacked reported earlier that Börsenmedien AG, a German-based media company is set to purchase a stake in SatoshiPay, a Stellar-based cryptocurrency start-up. There are growing expectations across the community that this may create opportunities for XLM growth.
One of the leading media companies for financial information in German-speaking countries wants to integrate SatoshiPay’s payment solution to allow online readers to pay for content with one click. The answer is based on Stellar distributed ledger network and provides a fast and cost-effective way to send payments directly from the reader’s wallet to the publisher.
Technical Review – XLM/USD
Given the recent breakout from the earlier described wedge formation, eyes are on a more significant wave of buying pressure. Looking to the upside there doesn’t appear to be much in the way near-term barriers. The next big area of interest for the bulls will likely be an above supply zone, tracking from $0.14000-$0.15000. XLM/USD faltered here at the back end of 2018, the high print in December after a decent bull run.
Should the bulls carry through momentum and break down this noted zone, then eyes will be on the move back towards the $0.20000 territory. The price last traded here on 21st November 2018 during the market downfall at the time. Lastly, a return to the pre-November fall area of $0.25000-$0.29000 range would be eyed.
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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