Stellar Lumens Price Forecast as it Approaches Critical Resistance Level

Summary:
• Stellar Lumens price has surged by 26 percent this year, following a similar industry-wide cryptocurrency bullish trend.

After dropping by almost 5 percent in yesterday’s trading session, the Stellar Lumens price (XLM) is looking poised to continue with the bearish trend today, with its value already down by less than a percentage point. yesterday’s rice reversal mirrored the change in the trend of the industry-wide crypto markets, which also went down yesterday and has already lost a percentage point of its market capitalization.

Stellar Lumens Price Fundamental Analysis

Stellar Lumens price has surged by 26 percent year-to-date despite not having significant news material that may have triggered the bullish trend. This is because part of the reason its price is rising has been a result of its significant correlation with the industry. The bullish trend has been seen across the industry, including Bitcoin, which is currently up by 38 percent this month.

Using the industry-wide bullish trend, we can also be able to see that, despite the Stella Lumens price drop over the past two days, its continued growth will most likely be driven by industry-wide market factors. Therefore, as long as the current industry-wide bullish trend continues, we are likely going to see the Stellar Lumens price continuing to rise.

Technical Analysis

The above view of continued price gains in the next few trading sessions is also supported by the recent price action, which has been aggressively bullish, resulting in its value surging by 26 percent YTD. Technical indicators such as the Williams Alligator also continue to signal a continuation the bullish trend, as seen in the daily chart below.

The chart below also points to the current price drop as a possible bullish flag rather than a bearish price reversal. This is as seen in previous price drops in the current long-term bullish trend, whereby the prices ended up recovering and setting up a new price high.

Therefore, based on all these facts, I expect the Stellar Lumens price to continue rising. There is a high likelihood we might see it trading above the $0.0992 resistance level in the next few trading sessions. A trade above $0.1 is also a possibility.

Daily Chart