How far can the bullish rebound of Stellar Lumens (XLM) go? This is a question that many investors are asking as the cryptocurrency market experiences a wave of positive momentum. With Bitcoin’s jump from $29.2k to $29.6k in the last 24 hours, the entire market has seen decent gains, including Stellar Lumens.
Stellar Lumens’ Performance
After a significant 44% price increase between 18th and 20th July, Stellar Lumens experienced a deep retracement following a price rejection at the $0.180 level. However, a subsequent 15% bullish rebound from the $0.140 price level has helped maintain XLM’s upward momentum, propelling it into the top 20 trending tokens on Coin Market Cap.
Bullish Rebound Indicators
Key indicators highlight the possibility of further gains for XLM. The Relative Strength Index (RSI) experienced a sharp rise from the neutral 50 mark, indicating an influx of new demand for XLM. This was mirrored by the On Balance Volume (OBV), which registered an uptick in trading volume, suggesting strong buying pressure and rising volume flow.
By placing the Fibonacci retracement tool between the recent swing low (17th July) and high (20th July), we can observe the bullish intent. It reveals that the bearish retracement dwindled close to the 73.6% Fib level ($0.136), providing bulls with an opportunity to rally. As of press time, XLM traded at $0.160, just above the 38.2% Fib level ($0.159).
Future Predictions for Stellar Lumens
If the price manages to close above the 38.2% Fib level ($0.159), bulls could potentially push the price towards the 23.6% Fib level ($0.167) and the resistance level at $0.180. Conversely, a close below the 38.2% Fib level could invite sellers back into the market, with short-term targets at the 50% Fib level ($0.152) and 61.8% Fib level ($0.145).
The Open Interest (OI) for XLM saw a spike over the past 24 hours, increasing from $59 million to $85 million, a 38.9% change. This indicates that market speculators are actively supporting the bullish rebound. The Spot CVD also continued to rise over the same period, aiding buyers’ short-term momentum.
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