The Lumens (XLM) star cryptocurrency this week stunned the market after a significant growth of almost 30% over the past few days, from April 16.
Crypto -traders continue to try to understand what could be behind this surge. The combination of general behavior in the market, as well as some unusual transactions associated with bitcoins, can give some tips.
Rally for several days
Stellar began on April 16 at a price of about 0.23 dollars, but quickly rose to $ 0.3.
This formed a huge green candle on a weekly graphics. It was the same as one of the strongest weekly performances of cryptocurrency over the past few months. It is interesting that this also helped the cryptocurrency to leave the merchant range, in which he was stuck since last year.
At the time of writing, XLM has grown by about 28% over the past 10 days. He traded at about $ 0.2820.
Currently, there is no real explanation or outside the chain for this rally. However, several developments show an interesting picture.
First of all, the general crypto -market showed great power on Monday. Many altcoins are trading in green in the last week showing the best investor appetite.
In accordance with this, the XLM Crypto was especially created to obtain benefits from this increase in prices with its similarity to the popular XRP. This intensive purchase could make liquidity to the XLM market and caused a price increase.
Breakthrough of long -term resistance
Before this breakthrough, XLM rose from its April minimum of about $ 0.2.
The cryptocurrency even crossed its main daily sliding medium. This included a 50-day amount of $ 0.258, and it seeks to explode above 200-day $ 0.3.
Both of these moving average values were historically considered as important stages for assets when it comes to a bull impulse. This rally allowed XLM to avoid the formation of a falling wedge, in which he has been stuck since December last year.
Thus, the price of XLM, reached $ 0.3, means that the cryptocurrency is currently at high rates, which were the last time since May 2021 during the tail of the previous crypto -bit market. If the price of XLM can maintain its positive impulse and close the week in green, this will mean that the cryptocurrency is confirmed optimistic and will probably continue further.
According to the analyst Satori, $ XLM escaped from the macro -nickel trend and looks at the next transition to an increase.
Nevertheless, the analyst notes that there may be another resistance zone to follow the future, especially about 0.3 US dollars (or 200-day sliding average), mentioned above.
Indicators in the chain become bulls
Indicators on the chain show that the high price can be for Stellar. According to Coinglass, while the balanced funding indicators were mainly bear in the last year, they again became green over the past week, along with the bull return the rest of the market.
Along with this profitability of the percent of investors, the derivatives market also shows that financing rates were restored in March in the amount of $ 127 million. USA until 164 million dollars. USA at the time of writing an article. This indicates that more and more investors are interested in the stellar market in the derivatives market and pump more money into open positions.
In general, this can do a lot to help cryptocurrency to overcome this price resistance in the amount of $ 0.3 and aims at even more maximum. The Fibonacci recovery tool shows that a re -test level of price in the amount of $ 0.275 is possible for Stellar.
However, if the bulls intervene, cryptocurrency could bounce off this level of prices and rise 60% to the next maximum of about $ 0.41. Nevertheless, the inability to maintain its position around this zone for $ 0.275 can lead to a further decrease in the US $ 0.2.
