Stellar Lumens had a bullish market momentum in the last two days, and it was only in the last few hours that the coin saw a turn in momentum in favor of the bulls. This change in opinion suggested a step upside down for XLM.
EOS 1-hour chart
After the first week of January, XLM has been trading between $0.233 and $0.313. Owing to the timeframe of the market action, the values associated with this range have become relevant on the hourly map.
The 50 percent range, $0.271, is the most critical amount within the range – rejection at, or ascent beyond, is a strong indicator of investor sentiment. Stellar Lumens demonstrated some intensity as it climbed past the mid-point of the range at which it was trading.
The RSI, which had been choppy with a neutral 50 rating, rose above it to signify a short-term bullish momentum. The MACD also developed a bullish crossover and climbed over the zero levels.
The Bollinger bandwidth tracker hit a low point on the 24th and has since risen to indicate that the variance is steadily increasing.
The trading rate also saw a small increase as the stock climbed past the midpoint. Taken together, both metrics have demonstrated that XLM is likely to shift upwards. Generally, bulls arguing the mid-point would result in bulls pushing up the market to test the range of peaks.
A retest at the same level would give a perfect entrance to a long place while falling below that level would invalidate the power of the bull.
A retest will be an ideal, long-position entry. The $0.29 level could provide some resistance to XLM which will be a spot to make some money. Losing the mid-point of the spectrum would not only invalidate this idea, but will also imply that a switch to the low range was on the table.
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
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