Stellar Lumens (XLM) has retraced against Bitcoin over recent days, failing to follow other leading altcoins higher. Indicators suggest the altcoin may soon outperform Bitcoin — a sentiment in line with those shared by crypto traders.
Stellar Lumens Could Bounce Against Bitcoin After Drop: TD Sequential
Stellar Lumens has been bleeding out against Bitcoin over recent days as the leading cryptocurrency has pressed higher. This price action can be seen in the chart below, which shows XLM’s underperformance of BTC on the right side of the chart.
The coin is purportedly due to bounce, a Tom Demark Sequential analysis indicates. The sequential is an indicator that forms “9” and “13” candles when an asset undergoes a technical inflection point in its trend.
In XLM’s case, a “buy 9” candle was just formed. This suggests that Stellar will recover against Bitcoin in the coming days. The Tom Demark Sequential has had quite the strong performance on calling XLM price action in recent months, predicting local lows in April, late May, and early July.
Chart of XLM's price action against Bitcoin over recent months with Tom Demark Sequential levels and candles by a Telegram channel tracking this technical signal. Chart from TradingVIew.com
Other analysts are also bullish on Stellar Lumens. One trader shared the chart below last week, writing the following on why the asset is poised to go parabolic in the weeks ahead:
$XLM is still one of my favorites.
- Broke a +350 days of accumulation range
- Good volume expansion in the breakout
- Break in market structure
- Currently retesting the accumulation range and making a new higher low.
Chart of XLM/BTC macro price action with analysis by trader Inmortal Technique (@Inmortalcrypto on Twitter). Chart from TradingView.com
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Bitcoin Needs to Hold $10,500
For altcoins to outperform Bitcoin, some analysts think that the leading cryptocurrency must maintain its consolidation in the $10,500-12,000 range. One historically accurate crypto trader wrote on the matter, referencing the chart below:
“BTC. 11500-11700, then down to test the 10400-10500 support zone, which should hold for a while. Looking for longs above that level and shorts below it. Altcoins should perform very well as long as BTC stays above 10.5k -> $EOS, $XTZ, $XRP, $XLM (Stellar)…”
Price chart of BTC fractal by crypto trader il Capo of Crypto (@Cryptocapo_ on Twitter). Chart from TradingView.com
There are some, unfortunately, that don’t think Bitcoin is still in a bullish state.
One trader noted that since Bitcoin keeps on failing to surmount $12,000, it could retrace towards the $9,000s. This same trader, though, noted that altcoins may hold up rather well for the time being (Stellar Lumens was not specifically mentioned).
Featured Image from Shutterstock Price tags: xlmusd, xlmbtc CHarts from TradingView.com Stellar Lumens (XLM) Is Poised to Bounce Against Bitcoin: Here's Why