Stellar Lumens (XLM) is up by a percentage point in today’s trading session. This is a reversal of yesterday’s strong bearish move that saw the cryptocurrency drop by 9 per cent. However, before yesterday’s price drop, Stellar Lumens had been in an aggressive four-day bull run that had resulted in prices rising by 27 per cent.
For months, Stellar Lumens has traded in a strong bearish market. This has resulted in the cryptocurrency dropping by 48 per cent since the year started. However, the prices of Stellar Lumens have started a recovery in the past week. Looking at the daily chart below, we can see that, from May 28th to May 31st. The prices rose by 27 per cent, and a 9 per cent price drop followed his in the markets in yesterday’s trading session.
However, today’s trading session looks poised to continue with the aggressive bullish trend we have seen in the past week. The prices are already up by more than one per cent. The bullish push also looks like it will continue throughout the day. Therefore, it is likely that the prices will close higher by the end of the session.
The chart also shows the Williams Alligator giving signals of a price reversal. Therefore, the current price surge may be a set-up for huge bullish moves in the coming trading sessions. The indicator also rules out the possibility of the current price surge being a bearish flag pattern. Based on the chart, I expect the prices to continue the current upward trend. We are highly likely to see the prices trading above the $0.15 price level again.
My price prediction also shows that prices are likely to hit the $0.167 resistance level and probably break to the upside. However, if the prices reverse and trade below today’s opening price of $0.137, then my bullish analysis will be invalidated. It will also mean there is a slight chance that the current bullish reversal has failed.
This post was last modified on Jun 02, 2022, 10:02 BST 10:02