Stellar Lumens (XLM) is once again on a bull spree as the price has broken out of a triangle on the daily XLM/USD chart and is now expected to surge higher in the days ahead. The last time Stellar (XLM) broke out of a similar triangle, it completed a massive bull run which led to Stellar Lumens (XLM)’s recent ATH. The price then followed a similar pattern and traded in another triangle all the way till mid July, until breaking out. The price is now once again at a similar point where such a rally can be expected.
RSI conditions for the daily XLM/USD chart shows that it has broken downtrend but could enter overbought levels soon if Stellar (XLM) continues to trade with the same momentum. Recently, a number of positive developments resulted in a big boost in Stellar (XLM)’s price when the cryptocurrency was up double digit against Bitcoin (BTC) and the US Dollar (USD) simultaneously. Wave trend analysis for XLM/USD shows that further upside is likely but a pullback would not be out of the ordinary at this point. However, Stellar (XLM) will most likely respect the uptrend support line that it has held since last year.
EMA alignment for XLM/USD daily chart is currently in favor of the bulls. If Bitcoin (BTC) demonstrates stability and any signs of a reversal in the near future, a big run up on Stellar (XLM) can be expected. This will most likely be preceded by a major announcement like a partnership with a big bank, financial institution or a multinational corporation. So far, Stellar (XLM) has IBM as its major partner on which it relies for most of its deals and agreements with financial institutions for which IBM is already a service provider. If any of these institutions, including the central bank, decide to use the Stellar Blockchain to issue their own cryptocurrencies, it might easily put Stellar (XLM) next to Ripple (XRP) or even above it.
Stellar Lumens (XLM) has surprisingly followed the same price action on the XLM/XBT chart as it has on the XLM/USD chart. The only difference is in the timeframes. Stellar (XLM) completed its first falling wedge on the XLM/USD chart from April 2017 to May 2018, whereas it completed its first falling wedge on XLM/XBT between Jan and May 2018. The same goes for the second falling wedge. The pattern of lag in formation of these falling wedges on XLM/XBT compared to XLM/USD charts can be used by professional traders to their advantage to deduce price action. XLM/XBT just like XLM/USD has continued to respect its long term support line without having breached it once. RSI on XLM/XBT also seems to be presenting a clearer picture of what is to be expected the XLM/USD chart. As can be seen on the chart above, Stellar Lumens (XLM) is prepared for another run up on the XLM/BTC daily chart. This means that we can expect to see a similar move against the US Dollar even though it may seem unlikely on the XLM/USD daily chart.