Stellar Holds Double Bottom as SuperTrend Keeps a Lid

Stellar Lumens (XLM) is potentially hitting a double bottom on the 15-minute charts, says Crypto With Gopal. The technical analysis provides a deeper perspective into the two strong reactions around the $0.17, currently serving as the support floor.

XLM’s price is now standing exactly at the pivotal point of $0.17 - the bounce from the local bottom of $0.169 is super mild, while the Bollinger Bands (BOLL) hint at $0.17155 as the breakout level for the bulls to achieve dominance. However, combined with the SuperTrend, a bullish thesis could be put on hold for a bit.

With the SuperTrend, lower highs & lower lows coupled with a decreasing SuperTrend line (typically indicated with red color) are meant to signal a change in the crypto’s price trend. Within a scenario where the green trend-line is below the actual XLM price, that would give out a bullish signal towards the $0.176 level.

Another quite important tell is the Chaikin Money Flow (CMF). This crypto-whale sentiment measuring trading device allows us to assess whether big-time Stellar Lumens investors are buying or selling at this price of XLM.

Almost unanimously, the CMF index dwelled in negative figures from -0.11 on various smaller time-frames down to -0.31 on the monthly one. Despite the technical double bottom, crypto currency whales are not buying it yet.

A similar pattern is observed in Derivatives markets, where the Futures contract on Stellar Lumens (XLM) displayed a 0.95 long versus short ratio. Outnumbering XLM’s bulls, the short-selling market participants incurred a deficit of $4.57K, as opposed to $48.10K in long XLM price liquidations.

On a brighter note, the steady growth of Open Interest (OI), which stands for all unsettled plays on Stellar Lumen’s (XLM) price, could lead to a clean short squeeze, wiping out short-sellers like dominoes if Stellar’s price manages to reach the $0.20 confluent resistance level in the bounce back rally following the double bottom touch.

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