Stellar reached highs of $0.418 when some altcoins came to life amidst the great exuberance of the cryptomorph market
Stellar (XLM) saw its price jump from about $0.23 to peaks of $0.418, the highest price level since May 2018.
Although it has retreated to around $0.35, the explosion seen in the last 24 hours means that the XLM has been the highlight among the top 10 cryptomorphs. The massive price hike in the last 24 hours has had the XLM in the spotlight, alongside the $37,000 jump that made Bitcoin Circuit the Bitcoin (BTC).
Other altcoins have also seen large movements in the charts, including Cardano (ADA), EOS, Ripple (XRP) and Nano (NANO).
But while the altcoins have exploded in life, the market is experiencing extreme volatility at the moment. This means that prices are likely to fluctuate widely. Stellar may hit a new all-time high or turn down and retort support by $0.12.
Stellar: technical framework
The XLM/USD coin pair has printed consecutive high candlesticks in the last four days and can add another higher daily closing. The bullish trend for XLM/USD comes after the altcoin has emerged from a downward triangle pattern, driven by positive fundamental news about Ukraine’s choice to use the Stellar blockchain for its CBDC.
If buyers can recover to the recent highs, near $0.42 (Fibonacci extension level of 61.8%), there may only be two other major resistors that are likely to block a bullish run to an all-time high. These obstacles are at the Fibonacci level of 50% of the old balance down to $0.53 and the Fibonacci level of 61.8% to $0.66.
Daily XLM/USD Chart. Source: TradingView
On the other hand, the XLM/USD pair may fall to $0.12 in the short to medium term.
The long upper wick on the daily sail suggests that bulls have faced massive resistance. The chart also shows the Relative Strength Index (RSI) in the overbought territory that supports withdrawal. While the potential for a slowdown may depend on overall crypto market action, bulls are more likely to be reaching exhaustion levels after such an epic price increase.
To maintain the advantage, bulls need to keep prices above two critical levels: $0.33 and $0.23. The latest price level is the scenario of the latest rejection that saw the XLM/USD pair hit a downtrend with the Bitcoin (BTC) rebound in December. By breaking this line, bears may have easy targets on 50-SMA ($0.16) and 100-SMA ($0.12).