The Stellar Lumens price is experiencing strong bullish momentum as analysts warm to the XLM following several high-profile deals. Stellar (XLM) extended its three-week winning streak to 67% over the weekend, fueled by a host of positive network developments.
Stellar Lumens has recently inked a deal with the Canadian central bank to develop a Central Bank Digital Currency (CBDC). The news that the stablecoin, pegged to the Canadian Dollar will use the Stellar network, follows Stellar’s partnership with Moneygram to provide a considerable tailwind for the Stellar lumens price. As a result, Stellar Lumen’s market cap jumped from $6.1b in September to just over $10b at Saturday’s high. However, the price has retreated 8% to $0.3884 in the last 48 hours on profit-taking ahead of a significant resistance level.
The daily chart shows the Stellar Lumens price is trading in a bullish parallel channel. However, XLM is running into robust overhead resistance at the September high of $0.4320. If XLM decisively clears $0.4320, an extension to the former all-time high at $0.6060 is probable. Above that, we can make an argument for a run at the ATH of $0.7985.
Despite the bullish outlook, XLM has spent the last four days grappling with the long-term indicator, which could be pivotal. If XLM drops below the 200-DMA at $0.3760, the bullish momentum may reverse. In that event, the lower edge of the rising channel at $0.3464 is the first support level. Below that, the 50-DMA at $0.3293 and the 100-day at $3141 provide additional cover. As long as the Stellar price pulls clear from the 200-DMA, I maintain a bullish stance, with a $0.6069 price target. However, a close below $0.3760 invalidates this short-term view.
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