XLM has more room to grow if bulls hold key support area

Stellar jumped more than 50% over three days to approach $0.10, though analysts split on whether another 60% rally awaits. The token sits at $0.086 after backing away from its $0.0907 peak. The rally

By Aubrey Swanson·10 July 2020·1 min read

XLM has more room to grow if bulls hold key support area

Key Points

Stellar jumped more than 50% over three days to approach $0.10, though analysts split on whether another 60% rally awaits.
The token sits at $0.086 after backing away from its $0.0907 peak.

Stellar jumped more than 50% over three days to approach $0.10, though analysts split on whether another 60% rally awaits. The token sits at $0.086 after backing away from its $0.0907 peak. The rally had encountered resistance near $0.097 before rolling over. Since hitting a local high on Thursday, the token has been drifting lower.

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Some traders believe the upside push will resume. GJMullen examined the charts on TradingView and noted that XLM broke out of a descending channel visible on both hourly and four-hour timeframes. The channel had been retested, and he read the breakout as setting up higher prices near term. PostyXBT voiced the same view, noting that Stellar is breaking out of a year-long trading range against Bitcoin. He projected potential upside to 0.00001690 BTC per coin. The token is trading at 0.0000959 bitcoins per unit.

But the momentum has weakened. Stellar dipped to $0.0867 today as sellers tested the position of the bulls. Over the past five trading sessions, though, buyers maintained a bullish bias on four occasions, keeping them in control. After giving up the $0.0900 support level, bulls are now defending $0.086 on the four-hour chart. A break below that drops support to $0.079. The 20-day Bollinger Band also marks $0.090 as a level that matters to those holding long.

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