Stellar Lumens recorded phenomenal actions at the start of October as the altcoin attained a nearly 66% surge to the local peak of $0.417. That took XLM around vital FIB levels that allowed healthy price progression. Traders have another opportunity to buy when XLM neared the 50 Simple Moving Average and the 61.8% FIB level.
Upswings from this zone might allow the alternative token to maintain its highs and touch price areas seen in September’s bulls run. While writing this content, XLM has its price actions near $0.372 after suffering a 3.4% plummet in the past 24 hours.
Stellar Lumens Daily Chart
As XLM trades at a 14% discount than its October’s local peak, the altcoin hunts an attractive price zone to kick-start its upcoming surge. Now, combing the 4Hr 50 Simple Moving Average, the level that triggered rebounds in the token’s current bullish rally, with the 61.8% FIB level, will translate to a considerable opportunity for traders to join the market.
If the alternative token penetrates this defense line, support secured beyond the 50% FIB level will have XLM maintaining a bullish case. Meanwhile, closing under the 38.2% FIB and 200 Simple Moving Average might challenge Stellar Lumens’ market structure. That will translate to possibilities of exposing XLM to further downswings.
Now What?
Meanwhile, the alt’s short-term indicators suggest some short-term threats. The RSI, Awesome Oscillators, and Moving Average Convergence Divergence alarmed to close under their half-lines before generating increased selling pressure in the sessions to come.
However, such movements have not impacted XLM’s prevailing run as bull always stepped up within no time at vital price zones. If the altcoin maintains this trend, Stellar Lumens will not encounter obstacles when rising o fresh local highs on its price chart.
Conclusion
Market analysts expect XLM to rebound from 61.8% FIB and explore higher price levels. If bulls manage to overcome the double top neat $0.431, it might move to hit $123.6%, then 138.2% FIB levels. However, that will require massive volumes. Traders that want to capitalize on the anticipated rally may long Stellar Lumens in the $0.364 – $0.360 range.
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James Thompson