Stellar: XLM Bullish Rally Shows Dead Cat Bounce Sign

XLM has risen 21 percent for the day and reached an intraday high of $0.456 amid the crypto market’s bullish momentum.

XLM  emerged from a bullish flag and pole price action pattern on the daily time frame, it looks bullish based on professional technical analysis.  If XLM breaks the pattern and closes a daily candle above the $0.45 mark, there is a good chance that the asset will eventually reach the $0.60 mark, according to the most recent price action and historical price momentum.

The impulsive Elliott Wave structure that peaked in wave at $0.64 on November 23 is followed by a descending wedge pattern on the 4-hour XLM chart.  The price dropped to a low of $0.31 on Dec. 20, which might have signaled the end of the corrective structure.

However, the price was held below descending resistance during the subsequent recovery, allowing for the possibility of additional correction development.

The token made significant progress, but any potential for additional upside will be limited,  particularly as its recent bullish rally is not supported by any specific news.

Stellar, a novel and eccentric substitute for storing and transferring funds, was introduced in 2015. The protocol connects individuals, banks, and other financial organizations to lower transaction costs and transfer latency. Its native Lumens (XLM) token serves as a bridge between various fiat currencies.

Stellar aims to introduce its technology to underserved communities that either lack access to traditional banking or experience its burden.

 

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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