According to the price analysis by Peter Smith, a financial analysist at dagx.live crypto trading platform, Stellar (XLM) rallied about 9% in the past seven days to land up as the fourth-best performer among major cryptocurrencies. Has it bottomed out or is this a dead cat bounce that is likely to be sold into. Let’s analyze the chart.
The XLM/USD pair has extended its recovery and has risen above the downtrend line. This is a positive sign as it shows that the bears are losing their grip. The pullback will now face resistance at the 20-week EMA and above it at $0.088708.
If the price turns down from $0.088708, a few days of range-bound action is likely. The trend will turn negative on a break below the recent lows of $0.051014. Conversely, if the bulls succeed in pushing the price above $0.088708 and the 50-week simple moving average (SMA), a move to $0.145 is possible.