- Summary:
- XLM price has broken above the $0.450 week-long resistance level and key metrics call for further upside with next target at $0.50
XLM price spiked on Tuesday, breaking above the week-long consolidation below $0.45. The coin was up by 11% and traded at $0.465 at press time, outperforming the majority of its altcoin peers amid a broader crypto market recovery. XLM’s recent pullback was triggered by profit-taking. Nonetheless, the coin’s monthly gains stand at 111% and is up by 215% YTD, affirming strong traction.
Immediate resistance for XLM price will likely lie at $0.50, which is a psychological barrier for the penny coin. The coin’s trading volume has been on an upward trajectory, signaling investor’s upbeat expectations. As seen on the chart below, XLM’s net volume has been on the rise despite the rise in the price. The net volume is the difference between the volume of asset sold and the volume bought.
Meanwhile, XLM’s derivatives market has experienced a significant growth. According to Coinglass, the derivatives volume rose by 137% in the last 24 hours. Meanwhile, Coinanalyze reports that the value of XLM’s perpetual contracts rose by 26.7% in the last 24 hours.
XLM’s rise is also tethered to XRP’s gains as investors increasingly focuses on utility. Both coins are designed to enhance transactions, and XRP has recently upped the tempo following Ripple’s launch of RLUSD.
XLM price prediction
On the chart below, XLM price pivots at $0.447, and the RSI indicator signals that the buyers are in control. The bullish momentum will likely meet initial resistance at $0.480. However, extended control by the buyers could break above that level and potentially test the next barrier at $0.500.
Conversely, if the price moves below $0.447, the momentum will shift to the downside. That could see the first support established at $0.432. However, a stronger downward momentum could break below that level and invalidate the upside narrative. Meanwhile, the downside could extend further and test the second XLMUSD support at $0.415.
