Stellar (XLM) Looks Ready for an Uptrend, Regular Bullish Divergence Signals on Intraday Charts

The Stellar Foundation-SDF, a non-profit with a focus on Stellar-based blockchain solutions recently announced an upgrade of the Stellar blockchain to Protocol version 18, a significant milestone for the Stellar ecosystem.

What’s New at Stellar (XLM)?

You may be wondering what makes this a big deal. Well, this upgrade makes it possible for Stellar holders and users to create liquidity pools without smart contracts and high gas fees, making Stellar the only layer-1 platform to activate such a native AMM [Automated Market Maker] functionality.

• Furthermore, Stellar (XLM) holders can leverage its products and inject liquidity for cross-asset conversions.
• As per a recent report, Stellar’s liquidity pools will retain a 0.3% negligible fee from liquidity providers at first.

Let’s proceed to analyze the XLMBTC and XLMUSDT price charts and gain further insights into how the recent events may affect the current XLM price.

XLM Price Prediction: XLMBTC Weekly Chart

The XLMBTC chart shows high demand for BTC compared to XLM. However, we could see a switch in trend polarity with higher RSI values above level-75 and level-25 going forward into the week.

XLM Price Prediction: XLMUSDT Weekly Chart

Beginning with the weekly time frame overview of the XLMUSDT, the crypto pair fixes a price floor at 0.1988 after entering the oversold area on 21 June ’21, and slowly transition into an uptrend with the RSI climbing above level-75 on 09 August ’21.

A weekly price close above the recent bearish divergence resistance [0.4207] will confirm our decision to enter a long position with confidence into the XLMUSDT.

Conversely, a collapse of the 0.1988 support will suggest further bearish sentiment for the XLM against the USDT.

XLM Price Prediction: XLMUSDT Daily Chart

The daily chart overhead also reveals a resistance level set up by bearish divergence patterns on 16 October ’21.

There are obviously three scenarios from this point, with the first being a breakout above the crucial $0.4207 resistance. A second scenario would be that the price could trade within the $0.4207 and $0.3083 price range. The third scenario would be a breakdown of the 0.3081 support for a deeper correction of the current price recovery.

We, however, maintain a positive bias toward the XLMUSDT pair, following the first scenario for a breakout to the upside.

XLM Price Prediction: XLMUSDT 4 HR Chart

A view into the intraday 4HR chart reveals a possible price floor in the works, after a recent regular bullish divergence on 06 November and a breakout of bearish divergence resistance.

We could see a higher XLM price with a break above the 0.3987 resistance to confirm our bullish bias.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.