Relative Strength Alert for Cryptocurrency Stellar
Stellar (XLM) is among the few cryptocurrencies holding back against the overall market weakness. Compared to the benchmark Altcoin index, the cryptocurrency XLM shows relative strength. The divergence between the XLM price and the Altcoin index is certainly a bullish signal.
XLM Relative Strength
The relative strength alert is showing up because Stellar (XLM)'s price made a higher low while, at the same time, the Altcoin index which tracks the overall market performance has printed a lower low. This points to the fact that XLM is stronger than the overall crypto market.
The relative strength signal often acts a leading indicator before a trend reversal.
We wrote a blog about the Relative Strength Index (RSI) here.
XLM Support Level
Since mid-May, the $0.10 big psychological level has been holding the downside as a strong support level. There were 4 tests of this support level, but each time the bulls came to the rescue.
In the short-term, if the bullish momentum persists, we can potentially retest the resistance area between the $0.130 and 0.138. A daily break and close above this resistance zone would open the door for a retest of the June high at around $0.158.
RSI Indicator
The Relative Strength Index (RSI) is sending mixed signals as it's hovering near the 50 mid-level. This behavior shows that we're still within a period of consolidation. In this regard, we can only expect a test of the consolidation's top which lies around the $0.15 level.
What is Stellar XLM?
Stellar is a cryptocurrency that was created in 2014. The currency, denoted by the XLM symbol, is based on the Ripple protocol.
It is intended to provide a decentralized platform for cross-border payments and has a built-in exchange. The Stellar network also offers a distributed ledger that is used to record financial transactions.
