- XLM price remains a leader in the cryptocurrency space, but its price action lags its peers.
- Daily price action remains below the Cloud and has yet to return to any lengthily period inside the Cloud.
- XLM upside potential significantly outweighs any near-term corrective move.
XLM price action has certainly been a disappointment to its supporters. Considering that cryptocurrencies like Dogecoin-killer Shiba Inu have rallied over 60% and Bitcoin itself over 20%, it is easy to see why XLM bulls are frustrated. The frustration is even stronger when you consider that XLM hasn’t made a new all-time high since January 3rd, 2018.
XLM price is laggard amongst its peers – and that represents an opportunity
XLM price appears to be stuck. But, in many ways, its price action indicates what you would likely see in a small-cap or micro-cap biotech stock that is slowly being accumulated – frustrating in the near term but bullish for the future. The accumulation will eventually break out and generate some substantial gains for XLM.
From a technical perspective, XLM needs to close above the Cloud with the Chikou Span above the candlesticks (ideally, also above the Cloud). This can occur if XLM price has a close at or above $0.35. From $0.35, a launching point could be established to propel XLM higher to at least the May 16th swing high at $0.79. Ideally, XLM would continue and finally catch up to the rest of the market and create new all-time highs above $0.92.
XLM/USDT Daily Ichimoku Chart
However, the bullish scenario may not have time to play out and could easily be invalidated. The Optex Bands are already trading at extremes, and there is some minor hidden bearish divergence between the XLM price candlestick chart and the Composite Index. Additionally, the first oversold condition in a bear market of 55 in the Relative Strength Index shows imminent weakness. These oscillator levels appear as XLM faces resistance against the bottom of the Cloud (Senkou Span B) – a warning that lower prices could occur at any time.
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