Having rallied 25 percent in the last 24 hours, Stellar's XLM token is now eyeing a bullish breakout on the price charts.
As of writing, XLM is changing hands at $0.57, according to data from OnChainFX. The cryptocurrency is up close to 100 percent compared to last week's low below $0.30.
Twenty-four-hour trading volume stands well over $0.5 billion – the highest level since Jan. 5, according to CoinMarketCap. The sharp rise in volume indicates strong hands are at play and the price rally could have legs.
While, XLM is still down 37 percent from its all-time high of $0.9381 set on Jan. 4, the price chart analysis indicates there is scope for a re-test of record highs in the near-term.
The above chart shows:
- Bull flag pattern: A close today (as per UTC) above $0.525 would confirm an upside breakout.
- The relative strength index (RSI) has turned higher from a neutral level (50.00), suggesting scope for a rally.
- Higher lows as indicated by the (blue) ascending trendline.
A bull flag breakout would indicate the pullback from the record highs above $0.90 has ended and the rally from the Dec. 28 low of $0.1774 has resumed.
- A close above $0.525 would open doors for $1.20 (target as per the measured height method – the difference between flag high and low added to breakout price).
- On the way higher, XLM could face resistance at $0.7415 (Jan. 13 high) and $0.9823 (December high).
- On the downside, a major bearish move would be seen only if prices drop below $0.39 (Jan. 22 low).
image via Shutterstock
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