Stellar Lumens [XLM] resurges as bears back off: Technical Analysis
The cryptocurrency market was given a rude awakening since the start of November, with a sharp decline observed on account of BCH hard fork tensions, which saw $183 billion wiped off from the collective market cap. Bears had engulfed the market on Wednesday and Thursday. The downward spiral has since eased, with several coins trading in the green. Stellar Lumens – the fifth most valuable crypto – is making its way out of this meltdown, with XLM posting solid gains on Thursday.
The token’s key resistance level was noted at $0.266, which the coin last touched on Tuesday, right before the market crashed. The key support level can be traced at $0.242, above which XLM is currently trading. The MACD shows that the crypto is trading with bullish momentum while the 100 EMA line shows that the coin is in a mild uptrend.
The hourly RSI indicator currently stands at 60.42, which shows that buyers are returning to the market and the coin could reach overbought levels if the momentum continues. The trading range exhibited by the crypto is $0.241-$0.251. At the time of writing, the digital asset climbed 7.8% against the U.S. dollar to trade at $0.245.
The virtual currency has risen close to 8% against Bitcoin [BTC]. Currently, one XLM is valued at 0.00004371 BTC.
The weekly volatility of the coin has been in excess of $1.2 billion due to the movement seen earlier this week. The crypto’s market cap reached $5.37 billion on Monday and dropped 23.7% to $4.09 billion by Thursday. As of 1500 UTC on Thursday, its market cap rose by a whopping 14.2% in 12 hours to its current position at $4.68 billion.