XLM began its uptrend as it created a higher low, setting up a price bullish divergence between a crucial trade volume indicator. Now, a continuation of this uptrend could take Stellar XLM to the levels seen on May 19.
XLM price created a local bottom on May 23 at a price of $0.338 and another one on May 30 at $0.372. While Stellar XLM set up higher lows, the On-Balance-Volume indicator set up a lower low, creating a bullish divergence relative to the XLM price. Therefore, investors can expect the XLM price to rally.
Further cementing this XLM bullish outlook is the Moving Average Convergence Divergence indicator, whose fast-length moving average is vying for a move above the slow-length moving average. If such a move were to happen, it would represent a bullish crossover.
This development suggests that the short-term price bullish momentum is rising faster, adding credence to the bullish thesis explained above.
Therefore, the XLM price seems ready to rise 55% to tag $0.643 after slicing through critical resistance levels at prices of $0.497 and $0.565, respectively.
If Stellar XLM price sets up a lower low below at $0.362, it will signify a weakening buying pressure. However, a breakdown of the support level at a price of $0.342 will invalidate the bullish thesis detailed above.
In that case, investors can expect Stellar XLM price to move sideways or sweep the lows here.
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