Stellar Price Analysis: XLM Coin Indicates A Double Bottom Pattern In Its Technical Chart

• The XLM price reclaim the 50-day EMA
• The XLM/BTC pair trades at 0.00006607 BTC with a gain of 7.08%
• The 24 hr volume for XLM coins is $701.3 Million

On September 29th, the XLM coin suggested the end of its moderate retracement phase when the price bounced from the 0.789 Fibonacci retracement level, displaying a bullish engulfing pattern. However, the price dropping to such a FIB level indicates some weakness in this coin. Furthermore, the XLM coin shows a double pattern in the daily time frame chart, providing an excellent long opportunity for them, having its neckline at the $0.32 mark. 

Concerning the EMA’s, the XLM coin is trading below the critical EMA’s 100 and 200 EMA, indicating a bearish trend is still intact. However, with the current price action, the coin has reclaimed the 50 EMA line.

The RSI value is at 53, indicating a slightly bullish sentiment within XLM coins. Moreover, the RSI has shown a strong surge in its value, suggesting the bulls are gaining momentum.

The XLM Coin In The 4hr Time Frame Chart

The XLM coin chart shows the price struggling to cross above the $0.32 mark, displayed by a few higher price rejection candles. Moreover, as the current sentiment for this coin is still bearish, for the above bullish pattern to work, the price needs to provide a decisive breakout from this overhead resistance. The XLM coin is currently trading at $0.31, with an intraday loss of 0.41%.

The moving average convergence/divergence(MACD) indicator shows the MACD and signal lines have just moved above the neutral zone (0.00), indicating the bullish sentiment in the coin.

Conclusion: From a technical perspective, the price has shown a significant fall in its value, and the proper trend is not yet established. The XLM coin price currently displays a great bullish opportunity for crypto traders with a double bottom pattern. Once the price gives a proper breakout from the neckline of this pattern, these trades can consider adding their position to their coin.

Support $0.28

Resistance $0.32