The Stellar (XLM) price tested lows of $0.118 on May 27 before it rebounded. At the time of publication, XLM was changing hands at $0.148 after setting intraday highs of $0.154, setting up to mark the fourth consecutive day of positive price action. XLM is up 6.75% in the last 24 hours and 14.90% since the past week. According to a recent announcement, customers of Mercado Bitcoin, the largest platform for digital assets in Latin America, will have access to USDC issued on the Stellar network. This, reportedly, is the first time that the Mercado Bitcoin platform has offered the same asset issued by different networks. By the end of 2022, the Stellar network plans to launch native smart contracts that will unlock the creation of numerous applications, which will further increase the utility of USDC on Stellar.
Key Levels
Resistance Levels: $0.2121, $0.1850, $0.1688
Support Levels: $0.1451, 0.1183, $0.1019
Since bouncing off the May lows and $0.1019 horizontal support level, XLM/USD has traded beyond the $0.1500 price zone. The moving averages (MA 50) provide the first resistance to the north. The moving average (MA 200), which is far above market price, provides XLM’s major price target of $0.2250. Stellar’s initial price slowly increased from $0.1183 to $0.1539.
The chart shows that the near-term resistance is $0.1625, which, if broken, might lead to a potential $0.2121 retest. Higher resistance levels result from a reversal outside the horizontal channel, which might open the route for $0.2450 and $0.3000, where $0.1451 provides additional downside support. Below here is the level of $0.1183, which is a vital support level.
XLM/USD 4-Hour ChartThe 4-hour relative strength index (RSI) and the moving average (MA 200), among other indicators, indicate a strong short-term outlook. The RSI is trending in the overbought zone following its recovery from the trough. If the rally continues to gather traction, XMR bulls might gain market share and raise their positions in anticipation of a break of the $0.1850 resistance level.
Stellar is now holding an intraday gain as the bulls sustain the bias. From $0.1183, the key support, XLM/USD is approaching the $0.1600 round figure. The pair looks green in the middle of the side movement. If the price finds sustaining through the upside traction an uphill task, a re-test of the prior short-term bottom around $0.1183 is likely possible, though trading beneath the 4-hour MA 50 may be dangerous.
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