XLM soars 15% in 7 days, but short traders remain resilient
Journalist
Posted:
- XLM’s worth rallied by 15% within the final week.
- Quick merchants, nevertheless, have been eyeing a worth decline.
With a 15% hike in its worth, Stellar [XLM] has closed the week because the cryptocurrency asset with essentially the most good points within the final seven days, information from CoinMarketCap confirmed. At press time, the altcoin exchanged arms at $0.13.
Supply: CoinMarketCap
Learn Stellar’s [XLM] Value Prediction 2023-2024
The worth soar has occurred regardless of sharing a statistically important constructive correlation with main coin Bitcoin [BTC], whose worth grew by a mere 0.30% throughout the identical interval.
The spot market excels
The worth uptick within the final week has been pushed primarily by a renewed curiosity in XLM, resulting in a surge in new demand. Amongst merchants within the token’s spot market, the bulls regained management on 4 September and instantly initiated an 8% intraday worth soar on that day’s buying and selling session.
As of this writing, the Shifting Common Convergence/Divergence (MACD) indicator confirmed the bulls to stay in management, with the MACD indicator positioned above the development line. Since 4 September, the indicator has solely posted inexperienced histogram bars.
Additional, key momentum indicators signaled elevated XLM accumulation amongst every day merchants. For instance, the token’s Cash Movement Index (MFI) was positioned in an uptrend at 64.24, signaling that XLM accumulation outpaced sell-offs.
Likewise, the %Ok line (blue) of the altcoin’s Stochastic RSI indicator was pegged at 100%, suggesting that the amount of XLM accumulation exceeded distribution. The Stochastic RSI indicator measures momentum and identifies overbought and oversold situations available in the market.
At 100%, XLM was overbought at press time.
It’s key to notice that consumers usually discover it tasking to help additional worth rallies at this overbought degree. Thus, a retraction is likely to be imminent.
The slight retraction in XLM’s Chaikin Cash Movement (CMF) additionally lent some credence to the above place. Whereas nonetheless above its heart line and constructive at press time, the token’s CMF has trended downward since 6 September.
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This signaled a drop in capital influx into XLM spot markets and hinted on the graduation of profit-taking exercise.
Supply: XLM/USD, TradingView
Apparently, futures markets have more and more positioned bets in opposition to XLM’s worth. Information from Coinglass confirmed that funding charges throughout cryptocurrency exchanges have been more and more destructive since 17 August.
Supply: Coinglass
