Stellar Breaks Paramount Resistance As Week-Long Pump Turns Explosive With 15% Gain
Stellar’s XLM has been on a gradual climb for the last few days. This despite the market suffering due to different economic factors stemming from the COVID-19 pandemic. Stellar’s gradual trend has however gone explosive in the last 24 hours as it surged by over 15%. The huge jump came after the coin successfully broke the $0.050 resistance yesterday.
After showing no sign of slowing, investors’ FOMO has quickly seen it climb to reach over $0.055. The coin is now set to break $0.060 in the next few hours. But can we expect these gains to be sustained and for the coin to continue gaining?
Since Stellar dropped to the $0.045 range back in mid-April, the coin has been on an upward trajectory. Stellar has continued to set higher lows and higher highs approaching the critical $0.050 resistance.
This resistance was tested earlier in the week with an initial rejection but a higher high at $0.049 set. Since then, the bulls have pumped prices with aggression reaching the pinnacle in the last 24 hours, pumping the coin by more than 13%. Such a huge gain and with key resistance in play, the coin is faced by a major test if to continue pumping or a retracement before further setting the next trend.
How Is The Current Pump Different?
One crypto enthusiast has noted that previous Stellar pumps have been followed by a dump but the current rally is somewhat different and nearly impossible to predict. He notes that previous pumps were fast and hence the dump was equally fast once the coin topped. Its current pump has been a slow one which could raise its top higher and make predicting its dump hard.
The last time Stellar traded above $0.055 was back at the start of March when the market was still performing relatively bullish. Its break above this level is a major bullish sign that Stellar is aiming higher and its bulls have no intention of slowing down.
Once $0.060 is successfully broken and the coin can trade above this as its support, the bulls will be looking to reach a high of $0.070 last achieved back in early February when the market was strongly bullish.
On the lower side, the coin will be aiming to stay above $0.055 to remain bullish. Below this could see it set a long term price range between $0.048 and $0.052 with a breakout needing a strong trigger and/or pump.