Stellar XLM Massive 48% Price Explosion, $0.2 On the Horizon

Stellar has seen a wonderful week of price growth where the cryptocurrency has exploded by a total of 28.70%. Just over the past 24 hours alone, the cryptocurrency managed to surge by a further 13.73% to reach a price of $0.1338.

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Stellar had managed to reach a high of around $0.1633 before Bitcoin plunged back beneath the $8,000 level, dragging the USD values for other cryptocurrencies down with it.

The Stellar project is now ranked in 9th position amongst the top cryptocurrencies by market cap valuation, with a total market cap value of $2.61 billion. Its cryptocurrency, XLM, is now quickly closing in on 8th position holder, Tether, as it currently sits a total of $270 million behind USDT’s market cap value.

In this article, we will take a look at the potential for Stellar to rise and climb above the $0.2 level. For Stellar to rise and reach the $0.2 level, the cryptocurrency would need to surge by a total of 47% from its current price. The last time Stellar was at the $0.2 level was during November 2018. However, the recent price surge has now allowed the Stellar’s price to surge above some crucial resistance levels, including a 12-month-old descending trend line and the 100-day moving average level. The break above these two strong resistance levels could signal a bullish ride ahead.

Let us take a look at the XLM/USD chart and highlight some potential areas of support and resistance moving forward.

Stellar Price Analysis

XLM/USD – MEDIUM TERM – DAILY CHART

What Has Been Going On?

Taking a look at the XLM/USD chart above, we can clearly see the recent price surge causing XLM/USD to storm above the 100-day moving average level around a price of $0.11. The cryptocurrency then went on to continue to rise further higher until reaching resistance around the $0.14 price level. This area had provided strong resistance for the market during April 2019, and Stellar was unsuccessful in closing above this level yesterday.

In today’s session, the market managed to surge higher and reach a high of $0.1633, but has since reversed and dropped back beneath $0.14.

What Is the Current Trend?

The current short-term trend for Stellar is presently bullish. However, if we would like to see the medium-term trend turn bullish also, we would need to see price action rise and break above the $0.14 resistance level to create a fresh 2019 high.

Where Is the Resistance On the Way Toward $0.2?

If the buyers are successful in breaking above the current resistance at $0.14, we can expect immediate further resistance above to be located at $0.1515. The resistance in this area is provided by the bearish .382 Fibonacci Retracement level (drawn in red). This bearish Fibonacci Retracement level is measured from the November 2018 high to the February 2019 low. This area of resistance is also further bolstered by a 1.272 Fibonacci Extension level (drawn in gold) also in the same area.

Above $0.1515, further resistance then lies at $0.16, $0.17, and $0.18. The resistance at $0.18 is strengthened due to the bearish .5 Fibonacci Retracement level (drawn in red) being located within this area.

If the bulls can break above $0.18, they will need to contest the resistance at $0.1880 before being clear to make an attempt at the $0.2 level.

What If the Sellers Regain Control?

Alternatively, if the sellers regroup and begin to push the market beneath the current support around the $0.1348 level, we can expect immediate support beneath at $0.1274 and $0.12. Beneath $0.12, further support below is located at $0.1103, $0.103, and $0.100.

What Are the Technical Indicators Showing?

The RSI has recently turned downward after reaching overbought conditions. Furthermore, the Stochastic RSI is also showing signs that the bulls might be running out of steam ahead, as it is primed for a crossover below signal in overbought territory which would signal that a retracement is on the horizon.

Conclusion

Stellar most certainly has the potential to rise by 47% and hit the $0.2 price level within the next few weeks. However, the cryptocurrency will need to overcome strong resistance at the $0.14, $0.15, and $0.18 levels before being able to be free to make an attempt at $0.2.

Judging by the signals from the technical indicators, we could expect a small retracement over the next 2 or 3 days, perhaps into the $0.12 regions, before Stellar is ready to make another bullish attempt into the $0.2 target level.

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