The XLM price has surged 30% after testing the support of last month’s low. Now Stellar has broken out, can the bulls start to celebrate?
The last time XLM broke below $0.2000, a 55% rally followed. presently, Stellar Lumens is more than halfway to repeating the feat.
XLM is trading at $0.2465, higher by $0.019 (+8.34%) today and back into the green by +3.09% over the last week.
The cryptocurrency market is suddenly basking in the glow of investor confidence. A much-needed reversal of fortune may finally open the door for Stellar Lumens to eye the crucial $0.4000 level.
The impressive price performance over the last three days has repaired much of the last week’s damage. Furthermore, XLM has increased its market cap by more than $1 billion to the current $5.75 billion.
Furthermore, investors will be encouraged by an increasingly positive technical outlook.
The daily chart highlights a clear descending triangle pattern in place from May.
The top end of the formation is represented by a falling trendline present at $0.2400.
The lower horizontal edge is visible at $0.1950, linking the low points from the 22nd of June and the 20th of July. Additionally, these cycle lows have also formed a bullish double-bottom on the daily chart.
I would consider this development very encouraging. However, the XLM price is currently stalling at the 19th of May’s, $0.2600 low.
Despite this, a positive close today confirms the upside breakout. Furthermore, the Relative Strength Index (RSI) is turning higher from Monday’s oversold reading.
Therefore the outlook has improved and will remain positive as long as XLM stays above the trend line resistance. Not to mention, a close above $0.2600 may further encourage the bulls.
For the moment, it is too early to say if the rally will continue. However, the signs that it will are certainly increasing.
Follow Elliott on Twitter.
