Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XLM has cracked the June 2022 – June 2023 price cap of $0.13.
- Short positions were discouraged in all time frames as of this writing.
Stellar Lumens [XLM] does not risk July gains as it consolidates above the previous 2022/2023 price cap. In mid-July, the altcoin cleared a major $0.13 roadblock, limiting further upwards between June 2022 and June 2023.
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Stellar has been fluctuating above the breakout level ($0.13) and $0.17 since mid-July. Despite From Bitcoin [BTC] weak price action over the same period, XLM has fiercely defended the mid-July breakout level.
The bulls defended $0.13
Source: XLM/USDT on TradingView
The Relative Strength Index retook the 50 mark, adding further buying pressure over the weekend. However, the Chaikin Money Flow struggled to cross the zero mark, highlighting weak capital inflows in XLM markets.
However, the range low and weekly breaker block of $0.114 – $0.123 (cyan) has been defended, highlighting the area as a solid bullish zone. So, if BTC does not post further losses, the bullish zone could be a discount buy level targeting overhead resistances.
In the north, resistance levels are found at the range-high of $0.1725, $0.2 and the weekly bearish order block of $0.22 – $0.24 (red).
A break below the bullish zone will show an extreme weakening of the XLM market structure. In the South, the immediate support is at $0.099.
Short positions are not recommended
Source: Coinglass (XLM liquidation data on August 6)
According to Coinglass, XLM registered a massive liquidation of short positions. As much as >$140k in short positions were liquidated in the space of 4 hours. Interestingly, long positions saw zero liquidations over the same period – a short-term bullish bias.
How many Worth 1,10,100 XLMs today?
XLM open interest rates also rose by >1.5%, according to Mint glass. While it signals a spike in demand in the futures market, the volume decline could delay a strong rebound.
So the $0.11 – $0.13 bullish zone was an important interest rate area for bulls, especially if BTC does not take more losses in the coming hours/days.