The XLM price rally has run into overhead resistance over the last couple of days. But this may be just what the Stellar Lumens bulls need.
Stellar Lumens (XLM) continues to trade sideways and currently changes hands at $0.2730, down $0.0010 (-0.37%).
Like much the market, Stellar has performed well recently. Following Bitcoin’s strong reversal from $30,000 at the end of last month, the XLM price gained close to 60%.
However, BTC is struggling to advance beyond the sticky resistance of $40,000, and as a result, Stellar has pulled back around 11% from the 30th of July’s, $0.3004 high.
Despite the gain in the last two weeks, Stellar has been outperformed by rivals and has slipped to the rank of 19th-largest cryptocurrency behind Ethereum Classic (ETC).
However, there are encouraging signs Stellar is making progress in its push for mainstream adoption. We recently learned that Stellar is exploring the acquisition of legacy fiat remittance company Moneygram. The deal, valued at more than $1 billion, would certainly boost the projects profile and total addressable market. Furthermore, should the deal happen, it would be a coup for the crypto market.
With XLM 65% below 2021s high, the bulls will hope for the recent strength to continue. And if Stellar clears $0.3000, they might get it.
Stellar Lumens price forecast
The daily chart shows a robust bullish double bottom has formed at $0.1950. This is the significant support level. And as long as XLM remains above $0.1950 remain favourable on its prospects.
Furthermore, the 50-day moving average lends price support at $0.2611.
However, horizontal resistance from the February low at $0.3077 is currently capping the price. If Stellar clears this resistance, the price can extend towards the 100 and 200 DMA’s at $0.3737 and $0.3969.
Whilst this is a considerable hurdle, I am encouraged by the price action. XLM continues to nudge the resistance. And so far, pullbacks have been shallow. This suggests that buyers are regaining confidence and not easily shaken out of their positions.
Of course, as is the case with altcoins, Bitcoin will dictate what happens next. And on that basis, traders should take cues from the market leader. Should a steeper reversal from BTC force XLM below the support at $0.1950, it invalidates the bullish outlook.
XLM price chart (Daily)
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