Stellar is an open-source blockchain protocol for storing and moving digital currency. It can be used for limitless digital transactions across the globe. It is a powerful platform to create, send, and transact in digital currencies. XLM is the customized token of this ecosystem. As per the recent news, Grayscale Investments added 5.5 million XLM to its Stellar Lumens Trust. The following XLM technical analysis will highlight short-term price sentiment.
On March 30, 2021, the opening price was $0.41. As of April 5, 2021, XLM closed at $0.54. Thus, in the past week, the price has surged by roughly 32%. In the last 24 hours, XLM has traded between $0.44-$0.55.
Day-Ahead and Tomorrow
Currently, XLM is trading at $0.51. The price has decreased from the opening price of $0.54. Thus, the market looks bearish.
The A/D indicator is tapering down. Thus, there is heavy offloading of XLM by whales. Thus, high selling pressures are likely to exert downward pressure on the XLM price. Hence, we can expect the price to go down further.
The MACD and signal lines are positive. However, a bearish crossover by the MACD line over the signal line has occurred. Hence, we can expect intermittent price pullbacks amidst a positive price trend.
Currently, the RSI indicator is at 59%. It faced rejection at 46% and rallied. Thus, buying pressures are gradually overtaking the market. Thus, we can expect the price to start rising in some time.
XLM Technical Analysis
As per technical analysis, the price is soon likely to fall below the Fibonacci pivot point of $0.51 as some of the oscillators are indicating a price pullback. It may fall below the first support level of $0.47 as well before propelling.
The price has tested and fallen below the 23.6% FIB retracement level of $0.52. If by day close, the price retests and breaks out of this level, then we can be assured that the uptrend is strong. In that case, the bull run is expected to continue tomorrow as well.