Having united 25% in the last 24 hours, Stellar’s XLM token is now observing a bullish breakthrough on the price charts.
According to the writing, XLM is changing hands at $0.57, in accordance with data from OnChainFX. The cryptocurrency is up close to 100% compared to last week’s low under $0.3.
24-hour trading volume stands well over $0.5 billion – the highest level since Jan. 5, in accordance with CoinMarketCap. The sharp growth in volume proves strong hands are at play and the price rally could have legs.
Additionally, a look at the individual markets shows that investors are likely using bitcoin (BTC) to accumulate XLM. For example, the XLM/BTC pair on Binance is up 18%, while volumes have increased by only 10%.
While, XLM is still down 37% from its all-time high of $0.9381 set on Jan. 4, the price chart analysis shows there is scope for a re-test of record highs in the near future.
The above chart indicates:
Bull flag pattern: A close today (as per UTC) above $0.525 would confirm an upside breakthrough.
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) rising trendline.
A bull flag breakthrough 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 continued.
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 breakthrough price).
On the way higher, XLM could face opposition at $0.7415 (Jan. 13 high) and $0.9823 (December high).
On the downside, a main bearish step would be seen only if prices fall under $0.39 (Jan. 22 low).