Stellar Lumens, XLMUSD, continues to look bullish even after the cryptocurrency market retraced sharply this week as a reaction to Bitcoin Cash’s hard fork. Bitcoin’s market cap for instance dropped below $100 billion, and, most importantly, Bitcoin’s price crossed below the $6000 mark. What does the Stellar Lumens chart signal about our Stellar Lumens outlook? Is our Stellar Lumens forecast of 4 USD still intact?
Especially when the important $6k level in Bitcoin is tested it’s quite normal to see investors spooked, and for good reason.
One thing that caught our attention this week, though, is that some cryptocurrencies are showing resilience. In other words, they tend to fall not significantly, but they certainly recover much faster. Interestingly, Stellar Lumens is one of them.
Stellar Lumens Price Chart Still Bullish, Here is Why
As shown in the updated weekly Stellar Lumens chart below, the recent retrace respected our purple support line to the T. That is excellent from a chart perspective. In fact, Stellar Lumens stood out as one of the top resilient Cryptocurrencies that continue to hold important support levels.
From below Stellar Lumens XLMUSD price chart we observe the following conclusions:
- XLMUSD remains outside of the descending trendline that started in January 2018.
- XLMUSD continues making higher lows. What we think worth noting is how the price performance is consistent and not choppy, at least for a cryptocurrency. It’s steadily making higher lows which is building a strong support as we’ve seen in the recent 48 hours.
- At this point, we want to see Stellar Lumens continue to trade at or above 0.20 to strengthen the base.
- Volume needs to pick up. That is the only missing component for an XLM leg up. For that to happen, the sentiment surrounding the cryptocurrency market needs to change. That means Bitcoin needs to stabilize or even better, start an uptrend.
For now, we still think our bullish stance on Stellar Lumens is relevant even with the recent eventful week. Stellar’s price showed a resilience and the setup on the chart leads us to think that once the sentiment changes in the cryptocurrency sector, and anyone can find out how Stellar Lumens ranks among our top 10 favorite cryptocurrencies >>
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