Altcoin Stellar has won back important support and is ready for growth

The Stellar altcoin (XLM) rate confirmed the long-term support status at $0.077, and as long as the quotes are above this mark, the trend is considered bullish

Technical indicators speak in favor of continued growth.

XLM confirmed the support status

The weekly chart shows that XLM is located above the $0.077 level after confirming its status as support. At the beginning of 2019, this mark acted as a support, and in September of the same year it turned into a resistance.

In July 2020, the altcoin finally broke through this zone and touched a high of $0.119, after which it fell back to $0.077. As long as the price remains above this level, the trend is considered bullish.

The RSI is in the process of testing the level of 50, and the stochastic oscillator is moving in the north direction. If the quotes can hold above $0.077, both indicators will confirm the presence of a bullish trend with the prospect of its development in the direction of the nearest resistance of $0.117.

XLM chart from TradingView

Bullish trend

Daily charts emphasize the importance of the $0.071 zone. On September 23, the price temporarily deviated from this level, but soon returned beyond it and has been growing ever since. The 0.786% Fibonacci retracement level relative to the bullish move is also located here.

However, XLM has yet to test the strength of an important resistance, the break of which will confirm the presence of an uptrend. The quotes rolled back from the 0.382% Fibonacci retracement level of $0.087 and even in the case of a bullish breakout, XLM may encounter strong resistance at $0.099, where the 0.618% correction level is located.

XLM chart from TradingView

At the same time, technical indicators paint a bullish picture. The MACD, RSI and stochastic oscillator are rising. The trend is considered bullish, and XLM should continue to rise in the direction of resistance levels.

XLM chart from TradingView

Short-term dynamics

XLM/BTC Pair

Cryptocurrency Trader @CryptoNTez shared the XLM/BTC chart on Twitter and notes that the pair broke through the descending resistance line, reaching the important resistance zone of 760 satoshi.

Source: Twitter

The XLM/BTC pair has been following the descending resistance line since July 17, when a maximum of 1,180 satoshi was reached.

During the period from September 24 to October 16, the price formed a double bottom and broke through the resistance line the next day. This pattern was accompanied by significant bullish divergence signals from the RSI, which has since moved out of the oversold zone.

Despite the fact that the pair bounced back from the 760 level after an upward breakout, the length of the double-bottom pattern and the downward resistance line increase the likelihood of continued growth in the longer term.

If XLM manages to break through the 760 satoshi level, the next barrier is expected at 860 satoshi.

XLM chart from TradingView

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinions expressed in this forward-looking statement do not reflect those of the BeInCrypto editorial board.

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