- Stellar rebounds with 8% rise over 48 hours
- Strong support at $0.22 with bullish sentiment prevailing
- Long term outlook remains bullish for XLM
As with all other cryptos, Stellar Lumens (XLM) suffered a huge downturn in recent weeks with the price dropping to $0.24 from a high of $0.73 reached in April. This was the effects of bearish sentiment that caused the coin to drop by as much as 30% in just a few hours in the May crash.
And although there seem to be some bearish indicators in the market at present, XLM is up over the past 48 hours by at least 8%.
Stellar short-term outlook: can new bullishness be sustained?
After a heavy decline of over 20% on June 22, bulls once again entered the market 24 hours with the coin rising to around $0.25. It was again up over the past 24 hours and is now currently trading at the $0.2637 mark, or a 3% increase.
It may not be much but this means that trading volume has increased as turnover increased across the board. The recent bullish developments may take the price all the way up to the $0.30 mark. However, it remains to be seen if this can actually be sustained.
As already indicated there are a lot of factors that may come into play. But the most important thing is that the price did not continue descending to lower levels. Support seems very strong at the $0.20 mark.
Stellar medium to long-term outlook: $0.27 crucial entry point
Stellar’s price actually was down by 40% from June 16 as the low reached on May 23 at $0.274 was quickly breached. There were expectations of a further retreat to the level of $0.16 but this did not materialise.
At present, Stellar seems to be consolidating at around the $0.27 mark for another leg up to the $0.30 level. This depends on a lot of factors but especially increased interest from bulls.
The $0.27 price point seems to be a crucial level for an entry point for buyers. A strong close above this price point should indicate bullish sentiment for XLM and if the price were to continue to rise to the $0.30 level, this would mean a return of around 30% within a short period of time.
Stellar continues to retain its position in the Top 20 of cryptocurrencies by market cap and remains a good long-term investment. The price is expected to reach the $1 mark by the end of the year although this could also change drastically if bearish sentiment continues.
Looking to buy or trade Stellar (XLM) now? Invest at eToro!
Capital at risk
Share
Gerald Fenech
