By
Svetlana Soroka
April 5th, 2024
Should the bulls increase its momentum and breakout at the supply level of $0.15 Stellar traders can place a long position trade setup.
Key Highlights:
- Stellar price is bullish on the medium term;
- the bulls were taking over the XLM market gradually;
- price retracement is inevitable.
XLM/USD price Long-term Trend: Bearish
Supply levels: $0.12, $0.13, $0.15
Demand levels: $0.10, $0.09 $0.06
Stellar is still in a bearish trend on the long-term outlook. XLM price bottomed at the $0.09 price level last week. The bears lost the pressure and were unable to break down the demand level of $0.09. The bulls gained momentum and a strong bullish Japanese candle emerged that broke up the former supply level of $0.10 moving towards the $0.12 price level but resisted by the dynamic resistance of 21-day EMA. The market is bearish as long as the coin remains under 21-day EMA and 50-day EMA.
The Stellar price is closer to the two EMAs than that of last week but still below the 21-day EMA and 50-day EMA, which implies that the bulls’ momentum is gradually increasing. The MACD period 12 with its histogram is above the zero levels and the signal lines pointing to the north; this suggests that there could be a change in the market trend in the long-term as the bulls are gathering momentum.
Should the bulls increase its momentum and breakout at the supply level of $0.15 traders can place a long position trade setup. In case the bears defend the supply level of $0.12 a bearish ranging movement to the previous low will be expected.
XLM/USD Price Medium-term Trend: Bullish
XLM is in a bullish trend on the medium-term outlook. The cryptocurrency was in a ranging trend within the $0.10 and $0.09 price level till December 17. The formation of a bullish engulfing candle on December 17 signaled the bulls’ momentum on the XLM market. The bulls’ pressure pushed the XLM price to break up the $0.10 and $0.12 price levels.
Currently, there is a price retracement by the bears to retest the broken level after which there may be a continuation of the uptrend. The 21-day EMA has crossed the 50-day EMA upside with the XLM price trading above the two EMAs shows that Stellar price has changed to bullish trend on the medium-term outlook and further increase in price is expected as the MACD with its histogram is above the zero levels.