Technical Analysis: Stellar (XLM) Undergoes Strong but Healthy Consolidation
After a whopping 53% move to the upside by Stellar (XLM), consolidation was definitely expected for the past few days. The bears have been able to push XLM back down to $0.067 from $0.089, a nearly 25% decline, however, this isn’t necessarily concerning for the ninth-largest altcoin.
While the pullback might look scary, it’s really not a surprise considering the magnitude of the breakout. The bulls have been able to defend the 12-period EMA and the volume has been declining significantly, something that indicates a lack of strength for the bears.
The RSI has cooled off and it’s now hovering around 50 points. It’s important to note that any price above $0.057 is a higher low which means the bulls still have a lot of room to work with.
The bulls are in need of another leg up, probably below the high of $0.089 setting an Equilibrium pattern within the next few days.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.