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  • XLM price breakout above the descending parallel price range to confirm the push to $0.30.
  • Multiple technical indicators confirm Stellar’s bullish narrative.

XRP price recoded higher highs for four consecutive days between July 21 and July 24. However, Stellar slowed over the weekend but then started the week trading in the green. However, the digital asset’s price at around $0.285 was rejected by overhead pressure that rejected the XLM at the sane resistance area at the beginning of July.

For the past few days, Stellar has been hovering between the $0.257 and $0.279 price range. After falling below the $0.20 psychological level on July 20, recovery began that saw bulls regain control of the market flipping the 20-day, 50-day and the 100-day Simple Moving Averages (SMA) from resistance to support.

At the time of writing, XLM price teeters around $0.267 as bulls focus on pushing the price higher.

Is XLM Rally Towards $0.3 Sustainable?

Although the Stellar price appears drab at the moment, buyers appear determined to stretch the bullish leg. A rectangle pattern appears to have been formed on the 12-hour chart. In technical analysis, this chart can result in a significant move in any direction. Although the rectangle pattern does not have defined bullish or bearish breakout, other technical indicators predict a bullish move for XLM.

XLM seems to be battling immediate resistance posed by the middle boundary of the rectangle pattern at around $0.269. For a bullish move to be confirmed, XLM price must close the session above  this level and go above the rectangle at $0.297.

Note that the odds for a breakout beyond the $0.30 psychological level will be high once Stellar breaks the barrier defined by the descending parallel channel at $0.294.

XLM Price 12-Hour Chart

XLM Price 12-Hour Chart

Technical Indicators Accentuate a Bullish Stellar

A technical outlook from the Parabolic SAR and the Moving Average Convergence Divergence (MACD) indicators show validate the XLM’s bearish narrative. For example, the Parabolic SAR has flipped from positive to negative on July 21 and it continues to accentuate the bullish narrative. The MACD is moving  above the signal line and is positioned above the zero line in the positive region. Moreover the golden cross that occurred on Tuesday when the 20 SMA crossed above the 50 SMA are all bullish crypto signals.

On the flip side, a session closure below the rectangle at $0.257 will trigger selling orders that could see the XLM price retract to seek support at the 20-SMA ($0.252), the $0.550 psychological level and the 50-SMA currently at $0.246 respectively.

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