Stellar (XLM) appeared to be on the verge of breaking past its key trendline resistance on the daily chart, putting its multi-month consolidation structure under pressure.
For quite some time now, the token’s price has been trading in a range. However, its recent gains hinted at the possibility of its consolidation coming to an end. This, despite the fact that it lost some of its gains in the last 24 hours.
In fact, when this breakdown started, a number of technical indicators seemed to be quite supportive. At the time, XLM was trading above its important daily EMAs. That wasn’t the case at press time though after XLM lost over 6% of its value.
In the last 24 hours, whale activity on the network has intensified though. This alluded to big players becoming increasingly active. Hence, the question: Can XLM avoid a deeper breakdown and instead trigger a breakout towards $0.223?
A hike in volume and whale activity
According to the recent data, XLM’s trading volume surged to $353 million. The sharp uptick may be evidence of improving market participation, with the token approaching a key technical decision point.
That’s not all though as Stellar whales have also made moves by bagging more orders. The token’s whale activity has been gaining momentum, adding another bullish signal to the setup.
If larger holders continue to accumulate more orders while XLM remains above its key EMAs, buyers could gain enough momentum to defend the broader consolidation structure.
However, the trendline resistance remains critical. A sustained close below it could invalidate the altcoin’s current setup and expose XLM to additional selling pressure.
Can XLM reclaim $0.223?
The key resistance at $0.223 remains the next major target for Stellar bulls. Especially if the prevaling setup is not completely overhauled. Notably, a liquidity cluster worth approximately $262 million sits around this level, making it a key target zone for the token’s price action.
A successful breakout from the multi-month consolidation could send XLM towards $0.223 as liquidity around the resistance attracts further market activity.
As it stands, the trendline is the key level to watch. Holding it could give bulls an opportunity to build momentum, while a sustained breakdown would weaken the bullish outlook and delay the anticipated breakout.
Final Summary
- Stellar’s price action was approaching a key trendline resistance before a recent breakdown in price.
- A $262M liquidity cluster highlighted $0.223 as next key target for XLM.
Be the first to comment