Stellar Lumens (XLM) price edged lower on Wednesday, as it continued to blow hot and cold in a crypto market ecosystem that is largely on a recovery path. XLM price has gained about 2 percent in the last week, but has failed to return to the psychological $0.100 level last seen a month ago.
XLMUSD momentum indicators are encouraging, with the 20-day Exponential Moving Average (EMA) intersecting with the 50-EMA at $0.0954. The price was at $0.0968 at the time of writing, and a bullish crossover could strengthen the odds of a decisive upside trajectory. That said, Stellar Lumens price is at -25% year-to-date and -4.3% in the last month, underlining a bearish undercurrent.
XLM got a boost on Tuesday when Robinhood made it available for trading to New York residents. That will expand its exposure, but is unlikely to trigger a significant shift in the asset’s price volatility.
As the rest of the crypto market strengthens the upward momentum, continued whipsaw by XLMUSD could add downward pressure. That said, the current price level relative to near-term moving averages presents a potentially good entry point to buy low and wait for a potential upside breakout.
Stellar Lumens price pivots at 0.0967, and the RSI indicator signals that the sellers are currently in control. Therefore, the downside will likely prevail if resistance persists at the pivot. The first support could come at 0.0963 based on this set-up. However, extended bearishness could result in a breach below that mark to test 0.0960.
On the other hand, moving above 0.0967 will favour the buyers to take control. If that happens, the price could move higher to 0.0970 where the upward momentum could encounter the first hurdle. On stronger bullish control, the price could break above that barrier and invalidate the downside narrative. Also, it could result in further gains to test 0.0974.
This post was last modified on Sep 25, 2024, 15:40 BST 15:40