Stellar (XLM) has been on a tear recently, surging by a staggering 57.22% from November 4th to its peak of $0.1415 on November 12th. While the altcoin has since retreated slightly, the technical indicators remain overwhelmingly bullish, suggesting that the rally may not be over yet.
Breaking Out Of The Range
Like many other altcoins, XLM has broken free from a long-term range-bound pattern. The daily chart has flipped bullish, confirmed by the breach of the lower high at $0.097 on November 7th. The previously formidable resistance zone of $0.10 to $0.103 was swiftly overcome, triggering a bullish signal from the Supertrend indicator.
Key Levels to Watch
The $0.107 to $0.11 zone, which marked the July highs, now serves as a crucial support level. A potential retracement to the $0.115 or $0.11 levels could present a lucrative buying opportunity.
While the 100 and 200-day moving averages haven’t yet crossed bullishly, the price action has already surpassed them, indicating that a golden cross is imminent.
Liquidation Levels – A Double-Edged Sword
The liquidation map reveals a significant concentration of short and long liquidation levels at $0.1322 and $0.123, respectively. A significant number of these positions are highly leveraged and close to the current market price. This dynamic could potentially fuel a rapid price movement to either zone, sweeping liquidations and propelling the uptrend further.
Whether XLM heads towards the $0.123 or $0.115 support levels first remains to be seen. However, both levels present potential buying opportunities for those looking to capitalize on the ongoing bullish momentum.
Traders are advised to keep a close eye on Bitcoin’s price action and implement strict risk management strategies. While the future of XLM is uncertain, the current technical indicators and market sentiment suggest that the altcoin could be poised for substantial gains.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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