- Stellar Lumens price has formed an inverse head and shoulders pattern.
- In price action analysis, this is one of the most accurate bullish signs.
- Stellar has not made any meaningful news in the past few weeks.
Cryptocurrencies are having a good week as the recent momentum continued. Bitcoin price is sitting comfortably above $44,000, much higher than the year-to-date low of below $20,000. Some of the other top-performing coins are Helium, BitTorrent (BTT), and Solana. This article will look at what is happening with Stellar Lumens (XLM).
Stellar Lumens, like other cryptocurrencies, has bounced back in the past few days. It has jumped by over 23% from its lowest point in October as it underperformed other popular cryptocurrencies like Avalanche and Ethereum.
This underperformance is likely because Stellar has not made any headlines in this period. A closer look at its volume flows shows that it has been relatively stable in this period. The volume of XLM traded on Wednesday was over $76 million, down from Tuesday’s $103 million. On average, this volume has stayed below $70 million in the past few months.
The same is happening with Ripple (XRP), a coin that has similar characteristics as XLM. XRP still remains below the year-to-date high, which happened after the victory in the SEC vs Ripple case.
The most recent Stellar Lumens news is the collaboration between Stellar, MoneyGram, and Cinko, a fintech company. The partnership will provide the first crypto-to-cash and cash-to-crypto on and off ramp service for digital wallets. It comes a year after Stellar and MoneyGram launched their partnership.
Stellar Lumens price analysis
Turning to the daily chart, we see that the XLM price surged to a high of $0.1961 in July after the Ripple victory. It then retraced the surge and collapsed to a low of $0.10, its lowest level on October 12th of this year.
Now, the price has moved between the 50% and 61.3% Fibonacci Retracement level. It has also formed what looks like an inverse head and shoulders pattern. In price action analysis, this is one of the most popular bullish signs in the market.
Stellar has moved above the 50-day and 100-day moving averages, which is also a good thing. Therefore, the outlook for the XLM price is bullish, with the initial price to watch being at the neckline of the inverse H&S pattern at $0.1350. A break above that price will see it jump to the 38.2% retracement point at $0.1480. This price is about 20% above the current price.
