XLM price prediction: Why a bearish BTC could hurt breakout chances

• The daily structure was bullish and indicators showed that further gains are likely.
• The wall of resistance could once again push back Stellar Lumens bulls.

Stellar lumens [XLM] was at a key resistance level after rising 8.2% over the past four days. This is a market-wide trend – many altcoins have posted rapid gains over the past two weeks and broken through short-term resistance levels.

While this move was bullish, it had yet to break through resistance zones dating back to August or July. Furthermore, these are the key lows on the weekly chart and this also applies to Stellar Lumens.

Stellar Lumens Price Prediction – Reasons for Bearishness

Source: XLM/USDT on TradingView

The main driver of market sentiment is Bitcoin [BTC]. The leader hit a local high of $66.5K but has been pushed south in recent days. XLM could see a similar price movement in the coming days.

The resistance at $0.103 has been in place since August. This is the third time since Stellar Lumens bulls have attempted to break this barrier. Unless they manage to flip the level to support, swing traders can expect rejection and a bearish reversal.

The technical indicators showed bullish price expectations. OBV broke a local high, which could be an early signal of a move above resistance at $0.103. The daily RSI reflected strong bullish momentum. Nevertheless, the warning signs for price movements should not be overlooked.

Increasing anticipation of further profits

Source: Coinglass

The open interest trends highlighted increasing bullish expectations for Stellar Lumens. However, the OI was nowhere near the level it reached in March and April.

Read Stellar Lumens [XLM] Price prediction 2024-25

Putting all factors together, the Stellar Lumens price prediction is bearish despite the optimistic market expectations. A decline to the mid-level of $0.955 is likely.

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and reflects solely the opinion of the author