Markets

Is Stellar Lumens XLM/USD a buy after weekly gains?

  • Stellar Lumens has posted 7% gains in a week.
  • The cryptocurrency trades near the lowest levels in nearly two years.
  • XLM, Stellar Lumens native token, is recovering but faces a likely resistance.

Stellar Lumens XLM/USD has added 7% in the past one week. We remain in a large bear market, suggesting that the cryptocurrency is on its way to recovery. The gains are driven by momentum rather than market developments.
Stellar Lumens claims to be an open network for transactions involving all forms of money. The network is designed to connect financial entities and people across the world.

The potential for growth of Stellar Lumens caught the eye of investors in 2021. The token capped a high of nearly $0.8 in May 2021 from merely $0.11 at the start of the year. However, a crypto crash this year has forced XLM to near the lows at the beginning of 2021.

Stellar Lumens initiates recovery but faces a resistance

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.

It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.

eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.


Buy XLM with eToro today

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users.

It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets.

On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.


Buy XLM with Capital.com today

Source – TradingView

A technical outlook of XLM shows a moving average crossover. The short-term 20-day moving average has recovered above the 50-day moving average. A bullish MACD crossover also reinforces a bullish view of cryptocurrency. However, the momentum is still weak.

Thoughts on XLM

Technical indicators remain bullish on Stellar Lumens. The cryptocurrency has room for further upside. However, $0.12 is a key resistance to watch.

If XLM is to remain bullish, buyers must overcome the $0.12 resistance. The level has contained the price since June making it important for price action traders. If bulls outwit bears at the resistance, it could set XLM to the next resistance at $0.14.

Based on the above, XLM does not present an attractive buy opportunity despite the indicators sounding bullish. We need a break above the resistance to buy the token.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button