How far can Stellar Lumens’ bullish rebound go? This is a question on many investors’ minds, especially after its recent price surge. The short answer: it depends on a number of market factors. But let’s dive into the details.
Rebound Maintains Upward Momentum
Stellar Lumens, or XLM, experienced a significant price pump between July 18 and July 20, which was followed by a deep retracement after the price hit a resistance at $0.180. However, a 15% rebound from the $0.140 price level kept the upward momentum alive. This rebound landed Stellar Lumens in the top 20 trending tokens on Coin Market Cap.
Key Indicators Show Bullish Signs
The Relative Strength Index (RSI) and the On Balance Volume (OBV) are two indicators that have shown bullish signs for XLM. The RSI’s sharp rise from the neutral 50 mark suggests an influx of new demand. The OBV, on the other hand, shows a significant uptick in trading volume. These indicators together highlight strong buying pressure and rising volume flow.
Fibonacci Retracement Reveals Bullish Intent
When applying the Fibonacci retracement tool between the recent swing low and high, it reveals the bullish intent. The bearish retracement stopped near the 73.6% Fib level ($0.136), giving bulls a chance to rally. As of the time of writing, XLM is trading just above the 38.2% Fib level ($0.159). If prices stay above this level, it could lead to profit targets at the 23.6% Fib level ($0.167) and the resistance level at $0.180.
However, if the price closes below the 38.2% Fib level, it could bring sellers back into the market with short-term targets at the 50% Fib level ($0.152) and 61.8% Fib level ($0.145).
Another positive sign for the bullish rebound Disclaimer: The presented Open Interest (OI) data shows a 38.9% increase over the past 24 hours, suggesting that market speculators are actively backing the bullish ride.
For those interested in keeping track of their Stellar Lumens investment, the cryptoview.io application can be a useful tool. It allows users to monitor the performance of their cryptocurrency investments in real-time.
Start monitoring your investments with cryptoview.io now
