- XLM/USD following previous Bollinger squeeze breakouts as predicted
- XLM spot rates surged 29% in tandem with the market-wide recovery
- Prices could rally to crucial Fibonacci extension levels
JAIPUR (Coinchapter.com) – Stellar’s XLM is in a rebound mode after dropping to the year’s strongest support levels. The borderless payment facilitating cryptocurrency posted a 29% breakout from the classic Bollinger Band squeeze. We had predicted the same in our previous analysis on July 16.
XLM/USD spot rates rallied from lows at $0.198 to $0.278, thanks to the resurgence of bullish sentiment in crypto markets. Earlier breakouts from Bollinger Band squeeze(s) led XLM to chart 62% and 51% upsurges in January and April this year.
XLM/USD 4-Hour Technical Setup
The signs of XLM’s bullish breakout were already there before the Bollinger Band squeeze formation. Stellar’s native blockchain asset was trading in a bullish wedge formation since the May dump. The Bollinger squeeze only added fuel to the fire.
A combination of the above two bullish setups propelled the XLM/USD pair past crucial Fibonacci extension levels. They coincide with $0.24(61.8%), $0.25(78.6%) and $0.26(100%) prices. In the rally, XLM broke up above the 20-day exponential moving average (EMA) wave on July 21. The asset has stayed firm above the crucial indicator since then.
RSI shot up to 70 on London opening bell July 23, registering a 57% jump from the bottom at 30. MACD entered the bullish wave on July 21 and looks strong with no signs of going bust anytime soon.
Owing to the explosive buying pressure, XLM/USD looks primed to reclaim the resistance at $0.29. The said price coincides with the 161.8% Fibonacci extension level). If bulls sustain the momentum, then the Stellar cryptocurrency could even chart a higher path to $0.35.
Moneygram Takeover Rumors
On a fundamental note, the Stellar Development Foundation’s possible acquisition of remittance giant Moneygram may also be the reason behind the ongoing XLM price surge.
Ripple ended its collaboration with Moneygram just a few months ago. Stellar has now entered the picture along with Advent International. The takeover rumors indeed helped boost Moneygram stock prices.
But the hearsay may have got bulls excited for an exciting development for the blockchain-based payments company. Buyers may be buying the rumor, taking long positions on XLM/USD to book profits after ‘an acquisition rally.’