XLM price returned to the upside on Friday, mirroring a broader crypto market rebound. The coin was up by 1.7% and traded at $0.298 at the time of writing, but is still down by 10.1% year-to-date. The coin’s 24-hour trading volume was up by 15%, signaling strengthening of the upside momentum.
Bitcoin’s sustained stay above the $100k mark has provided the broader market with traction. The RSI on XLM price daily chart is at 57, which raises the prospect of continued upside. On the downside, XLM price upside could be limited by declining volumes of open interest.
As of this writing, that figure stood at $91.2 million, after reducing by 1.6% in the last 24 hours. A weakening open interest momentum signals declining investor confidence in the coin’s performance, and the resulting sentiment could add downward pressure on the XLMUSD trading pair.
However, with Bitcoin seemingly struggling to hit the $110k mark, XLM and XRP are two altcoins with an underlying FOMO (Fear Of Missing Out) sentiment due to their rising utility in settling financial transactions. That translates to a higher growth headroom for the two coins, especially in view of their current low pricing.
However, near-term performance will still be tethered to Bitcoin’s performance, and a break below the psychological $100k mark will likely drag XLM and the broader crypto market downward.
XLM Price Prediction
XLM price has its momentum at $0.297 and action above that level signals bullish control. The coin will likely meet the first resistance at $0.300. However, an extended control by the buyers will break above that level and could take the action higher to test $0.302.
On the other hand, going below $0.297 will favour the sellers to take control. That will likely see the first support come at $0.295. The upside narrative will be invalid if the price breaks below that level. In addition, such momentum could push the price lower and test the second support at $0.293.
The post XLM Price Prediction: Underlying FOMO Sentiment, But Near-Term Gains Limited appeared first in UK on InvestingCube.