While Ripple XRP was the center of attention end of last week, Stellar Lumens (XLM) aimed to become the shining star over the weekend. XLM/USD gained around 26% early Sunday and briefly topped EOS to become the 5th largest cryptocurrency by market cap. This surge, of course, is nowhere near XRP’s wild ride to $0.79 and back which resulted in over 100% surge since last week even after the bullish momentum slowed down. Regardless, let’s take a look at Stellar’s XLM/USD on the daily chart.
Stellar Lumens XLM/USD Technical Analysis
The pair has consistently been supported at around 0.19 since the big crash back in March 2018. It broke above the daily Ichimoku cloud twice since then in brief bullish momentum. The first time was back in April when it was able to reach the 38% Fibonacci retracement level before dropping back to the key support.
The second time it formed a lower high at 23% Fibonacci level. Now on Sunday, it looks like the pair is trying to break above the Ichimoku cloud again. But the question is, will it try to create a lower high than the previous $0.35 before dropping back to support? Because if XLM is able to break above the cloud and the 0.35 pivot level, the new bullish momentum could open doors for further gains towards the 38% and 50% Fibonacci retracement levels respectively.
What do you think is in store for XLM? Do you think the current bullish momentum is strong enough to keep the crypto going higher? Or should we expect yet another drop back to the 0.19 support? Let me know in the comments, and subscribe to get more updates! As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don't forget to complete your risk management due-diligence before developing your investment strategy.
*This article was originally published on Invest Diva.