HomeNewsStellar’s XLM On The Brink: A Potential Reversal Amidst Severe Supply Pressure...

Stellar’s XLM On The Brink: A Potential Reversal Amidst Severe Supply Pressure at $0.12

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  • Stellar’s XLM is challenging a crucial resistance zone at $0.119, with a potential 20% price surge to $0.1425 on the horizon.
  • The cryptocurrency faces a daunting supply pressure at $0.1195, along with the imminent threat of a death cross between the 50-day and 200-day EMA.

Analyzing Stellar’s Bullish Momentum and Potential Roadblocks

Stellar (XLM) has embarked on a journey, navigating through a bullish pathway with an aim to breach the formidable overhead resistance zone situated at $0.119. Despite its alignment with the broader bullish market trends, XLM is currently wrestling with substantial supply pressure, evident in its recent 15% revival, which has momentarily halted at the $0.1195 price point.

With a 65% year-to-date growth, Stellar’s trajectory in 2023 paints a predominantly bullish picture. However, it is crucial to note that the cryptocurrency is still trading at a 40% discount from its 2023 peak of $0.1959. The recent bullish momentum has successfully fractured a resistance trendline from a prior pullback phase, yet the looming overhead supply at $0.1195 is proving to be a formidable adversary.

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At present, XLM’s trading price hovers around $0.1169, showcasing a 1.76% decrease within a single day. This minor retreat is indicative of a short-term pullback, occurring within the context of an ongoing bullish revival.

Technical Insights: The Battle Between Bullish Hopes and Bearish Pressures

The technical landscape provides a mixed bag of signals for Stellar’s XLM. The Moving Average Convergence Divergence (MACD) indicator is riding a positive wave, with both the MACD and signal lines trekking above the halfway mark. This, coupled with the presence of bullish histograms, paints an optimistic picture for Stellar.

The 50-day Exponential Moving Average (EMA) is also playing a crucial role, moving sideways just above the 200-day EMA in an effort to stave off a potential death cross, which could spell trouble for XLM’s future price movements.

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Decoding What Lies Ahead for Stellar (XLM)

While XLM’s journey has seen its fair share of sideways movements, the formation of an inverted head and shoulder pattern, coupled with a recent trendline breakout, suggests that the winds might be changing in favor of the bulls. Should Stellar manage to reclaim its bullish momentum and conquer the $0.1195 resistance, a 20% ascent to $0.1426 could very well be on the cards.

However, it is imperative for investors and enthusiasts to brace for all possibilities, including a potential downturn that could drag XLM’s market value down to $0.1092, should the resistance prove too resilient.

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Brian Johnson
Brian Johnson
A dedicated Bitcoin journalist passionate about uncovering the latest trends, developments, and innovations in the world of cryptocurrency, while delivering engaging and well-researched articles to inform and educate readers on the dynamic digital finance landscape.
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