Along with several altcoins, XLM posted notable gains since the start of the year and is now bouncing back on a daily scale. It appeared to have finished correction while the bounce indicates signs of bullish.

Ending a month’s correction at the $0.32 level earlier this week, XLM mounted support above the mentioned level and the price bounced back.

At first, buying pressure was low but altcoin recovery later became strong daily as the market started the new year on a bullish note. Though XLM was not left behind in the move as it saw an interesting 10% increase since yesterday.

From a technical standpoint, the bulls are back in the market and without any doubt, we can anticipate a bigger price movement in the next few days. However, the $0.50 level might pose a little threat on the way up.

A successful breakout of this high should signal a bigger upward movement and at the same time validate more growth on a daily scale. Looking at the price actions, there’s currently no room for a drop.

However, if the bears show up again, we may see a slight reduction before rising back. But as it stands, the bulls appear to have the upper hand. For this reason, bigger growth should be expected in the next few days.

Source: Tradingview

The potential obstacle for the bulls right now is a minor $0.51 resistance, followed by $0.63. If the price breaks higher, the next resistance level may surface around $7 in the near term.

A drop from the current trading level could allow a retest at $0.414. Below this level lies the $0.32 and $0.27 supports in case of a breakdown.

Key Resistance Levels: $0.51, $0.63, $0.7

Key Support Levels: $0.414, $0.32, $0.27

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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