$XLM Stellar Lumens Price Analysis: It Really is a Rocketship

Disclaimer: This article is not financial advice. The author is not a financial advisor and this article was not paid for.

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Introduction

We haven’t gotten an opportunity to seriously talk about Stellar Lumens since the last time that it began taking off and heading toward the stars.

Unfortunately, that post is no longer available due to the draconian, spontaneous, and grossly unconstitutional forced censorship of this brand’s Medium account.

However, that is not enough to stop us from covering the recent price action for $XLM, so without further ado!

https://www.tradingview.com/x/P1otSSiS/

From first glance, the appreciation in price is obvious, yet there does appear to be some consolidation at the end there (we’ll speak on this a bit further down in our analysis).

https://www.tradingview.com/x/oBuxfPnZ/

Obviously, if you’ve been looking at the prices of coins on CoinMarketCap lately, you would have noticed that $XLM was among its top performers, which is saying a lot on a day where $BTC seemed to take off out of nowhere.

What Was the Catalyst for the Sudden Burst in Price?

The recently announced partnership between Stellar and ShiftMarkets detailed in this article here:

Shift Markets + Stellar News - Steemit
_Unless you've been sleeping under a rock, you've probably heard the recent news surrounding Stellar's partnership with…_steemit.com

As noted before, there does seem to be some apparent consolidation on the 2H chart, however, that is only to be expected when considering the fact that it is overbought in a market that has exhibited deeply bearish price action over the last 7 days.

Now, let’s zoom out a little bit and see what we can detect on the chart itself before we get into the indicators.

Chart Analysis

Short-Term Downtrend from August 3rd, 2018 to present (10th) is still in place for $XLM:

https://www.tradingview.com/x/aq6xCvex/

A break upward here, could mean a solid appreciation in price moving forward.

This mini-downtrend line is pretty well established though, however. Especially when considering the fact that the price has failed against this resistance three times already.

As to whether the price will break through it this time is anyone’s guess.

A good barometer to help us make that inference though would be the RSI.

Relative Strength Index (14 )

https://www.tradingview.com/x/8EzKYLaV/

Believe it or not, this is actually very difficult to interpret on the 12H chart and on all of the susbequent ones, because $XLM was viciously oversold for some period of time, then the RSI suddenly spiked up.

As mentioned at the beginning of the article, this is due to the bullish news that came out a few hours ago with regards to the ShiftMarkets partnership.

However, because of that bullish spike in the price, it is almost impossible to determine whether there was already a pre-existing underlying current of buy pressure on $XLM before the jump or to assess how much of this increase in price momentum is do to a genuine change in the trend or just the extremely short-term exuberance of investors due to the new news and the FOMO from the subsequent price gain.

Balance of Power (CryptoMedicated Edition)

Luckily, there was an indicator that I created via TradingView’s tools that allow me to ascertain whether there is a genuine undercurrent of positive sentiment for $XLM that transcends the bullish news that was released today.

It’s the CryptoMedicated Buy Pressure RSI

Purpose:

It tracks the fluctuating buy pressure via careful minute movements int he market. It is often ahead of time when it comes to assessing the potential change in sentiment or direction for a cryptocurrency.

Check out the chart below:

What you see above is on the 4H TF.

So, it can be safely stated that the sentiment on $XLM has been steadily growing over time, even before the release of the news of the partnership.

This is good news for $XLM holders.

However, it is still imperative to at least wait until the price breaks that mini-downtrend resistance before placing any sort of investment into it at this present moment in time.