- XLM price tests $0.437 support; a bounce could target $0.50, $0.56, and potentially $0.75 based on Fibonacci extensions.
- Trading volume for XLM surged, but a 12.46% drop in volume signals reduced liquidity, despite a bullish trend.
- XLM open interest stands at $362.13M, down 2.24%, indicating stable trader positioning despite slight market pullback.
XLM Price has shown strong price movement after a breakout from a descending wedge pattern. The cryptocurrency is now testing the 0.618 Fibonacci retracement at $0.437, a crucial support level. With trading volume increasing during the breakout and market sentiment leaning bullish, XLM may target higher price levels, to $0.75.
XLM Price Key Support Levels and Fibonacci Targets
XLM price is currently testing the 0.618 Fibonacci retracement level at $0.437. This level is key for the current trend, acting as strong support. If the price manages to bounce off this level, it could continue its upward movement.
The first immediate resistance is around $0.460. A break above this resistance may open the path to higher targets, with the next Fibonacci extensions showing potential resistance at $0.50, $0.56, and $0.66. The critical target for the bullish scenario is $0.75, aligned with the 1.272 Fibonacci extension level According to Analyst Ali Chart.
Source:Â Ali Chart/ X
The price ability to maintain support at $0.437 will be a decisive factor. A strong bounce here could confirm the continuation of the bullish trend. However, if the price fails to hold this level, a retest of lower trendlines near $0.40 or $0.37 could occur before a possible new attempt at upward movement.
XLM Price Market Sentiment and Volume Trends
Volume plays a crucial role in supporting the ongoing bullish narrative. Recent trading volume has increased, confirming strong market participation during the breakout. However, there has been a slight decrease in volume by 12.46%, down to $734.50M, which could indicate reduced liquidity in the short term. Despite this, the overall trend remains positive, with market participants generally maintaining their long positions.
Open interest, at $362.13M, is down by 2.24%, indicating a slight reduction in traders holding open positions. This minor decline in open interest suggests that traders are not exiting their positions in large numbers, supporting the idea that market participants remain cautiously optimistic.
Source: CoinGlass
If XLM price fails to hold the critical $0.437 support level, it could test lower trendlines near $0.40 or even $0.37. Given the current volatility, price action remains sensitive to these key levels. Therefore, monitoring the support and resistance levels closely is essential to gauge the strength and sustainability of the bullish trend.
