Stellar (XLM) Takes Support After Strong Profit Booking Session

XLM is no stranger to crypto-investors. Being the most popular financial cryptocurrency after XRP it is one of the cryptos with high potential. The fact that the same co-founder laid the foundation of XLM indicates an edge over the former cryptocurrency. After giving an outstanding 100% return in less than a month, we are witnessing the first negative retracement. XLM price action on the 18th of August 2021, is a strong battle between buyers and sellers as it has created huge wicks on either side. 

In the longer term, we expect XLM to outperform XRP, but for now, one should be cautious and wait for XLM to take support for buying or making a re-entry. Let us now analyze the price possibilities on Stellar in both a short and long time frame.

Stellar Price Analysis

XLM is still bullish on the yearly outlook with a huge gain of over 400% in just 2021 even after the massive sell-off from the highs of April 2021. XLM has once again bounced back from the levels of $0.1989. In the short term, XLM should consolidate before heading upwards to claim $0.50 psychological levels and attempting to turn into a dollar with XLM cryptocurrency. At present XLM has a market capitalization of close to 8 billion USD with a total net supply of 23 billion coins.

The huge wicks on both the positive and negative sides of XLM for the 18th of August seem to be a tussle to graph the further price action. On a negative note, XLM has support at $0.31 levels followed by its breakout level of $0.25 to $0.30. Summing them up, XLM has support from $0.25 to $0.3122 levels, which can become a pull-back region for this cryptocurrency. 

XLM is currently trading above a trend line angle of 33 degrees, which is a self-sustaining angle for further price action. For now, the 200 Day Moving Average at $0.40 is a resistance that needs to be broken. Once that is done, XLM can attempt to retest the higher resistance level of $0.4437.

On hourly charts, Stellar price can be seen trading at the lower band, below the 30 SMA line. As such XLM is in a negative trend in the shorter time frame. However, as it began trending in the upside levels from $0.30 levels, we can expect the swing supports to come into play and take XLM back to the levels of $0.40. The drawdown of close to 25% indicates a decent profit booking on the broader cryptocurrency market and can be expected to last for longer durations. 

XLM has once again attempted to trade in the upper band of the Bollinger bands but failed to do so. As per our XLM price prediction, it might take multiple attempts to turn bullish in the smaller time frame. RSI on hourly charts is trading at oversold zones indicating decreasing price action and buying sentiment.

Source: https://www.cryptonewsz.com/stellar-takes-support-after-strong-profit-booking-session/