- XLM witnesses a bullish punch after facing rejections from monthly A1 support twice.
- Stellar bulls are active in purchasing as market participants prepare for 2022.
- Expect a more bullish push against the overall market turmoil.
Stellar (XLM) remains stuck within a sideways formation as prices gradually fade beneath the S1 support mark of $0.27. Meanwhile, bears appear constrained amid global market turmoil, resulting from Omicron fears. Once these fears fade, expect XLM bulls to launch a new upsurge that might crack beyond $0.29, then $0.30, aiming at the 200-day SMA location of $0.32.
Stellar Bulls Overpower Bears, Preparing a Rally
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Stellar price movements witnessed a bullish push reaction on Monday morning following a bear-dictated weekend with a massive rejection around the S1 support mark at $0.27. Bulls managed to break past the S1 today morning and hit several bears’ stop losses that tried to push the altcoin down. That way, XLM cleared the road for a bullish move that should encounter less resistance in the up-and-coming session near $0.29.
The only factor contributing to the somehow muted price actions is the turmoil in the financial space as market players contemplate lockdowns in Europe amid the Omicron strain. When that begins to fade, expect XLM bulls to launch a steady run-up towards the first obstacles at $0.29, then $0.30. If bulls push past these levels, the 200-day Simple Moving Average at $0.31 might witness buying volume explosion. That would support more upside movements for the coin.
Meanwhile, current headwinds might weigh on sentiment more and catalyze a sell-off across the global markets. That might mean retesting $0.24, eying the monthly S2 footing at $0.21. That level emerges since it forms a double bottom when coupled with a sudden December crash.
For now, the global crypto industry witnesses downswings. While publishing this content, Bitcoin plummeted under the vital $46,000 barrier, trading at $45,930. Most digital coins mimic BTC’s price trend. However, XLM seems to escape the turmoil in the financial space, eyeing upsurges. For now, crypto enthusiasts await the coming year’s bull cycle.
Will XLM succeed in decoupling from the markets’ downward trends? Comment below.