• XLM reversed a significant portion of its recent price gains due to market correction.
• Long/short positions reveal a cautious approach in the futures market.
• Possibilities of bearish fake out and sustained downtrend can be seen.
Stellar Lumens [XLM] Price Retracement: Is it a Sign of Bullish Exhaustion?
The market correction over the past 72 hours has seen Bitcoin [BTC] and major altcoins shed a decent portion of their recent gains while Stellar Lumens [XLM] had earlier broken out of a compact range with 46.3% gains within a 24-hour period, but more than half of those gains have been wiped out with XLM trading under the $0.130 resistance level, as of press time.
Two Distinct Possibilities for XLM’s Future Movements
With price hovering just below the key level, two distinct possibilities could play out in the long term – bears could take advantage of this to initiate a sustained downtrend or bulls could look for new long opportunities which may lead to another price rally from the $0.130 level.
Market Speculators Adopt Cautious Approach
Relative Strength Index (RSI) dipped out of the overbought zone but remained above the neutral 50 which highlighted the presence of decent buying pressure for XLM while Chaikin Money Flow (CMF) turned negative with a reading of -0.03 which hinted at capital preservation moves by day traders.
Will XLMs Sellers Take Advantage Of This Retracement?
With BTC dropping below $30k, will sellers take advantage of this retracement or is it a bear trap? Has the bullish rally reached its limit? Only time will tell when either one or both possibilities come true.
Disclaimer:
The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.