Stellar Lumens was previously consolidating inside a symmetrical triangle pattern before picking the upside route to signal that bulls have won over. Resistance is holding, though, so a pullback may be needed to gather more buying momentum.

Applying the Fibonacci retracement tool on the breakout move shows that the 61.8% level is closest to the broken triangle top and area of interest around 0.083. A shallow pullback could bounce off the 38.2% level or 50% Fib that lines up with the 100 SMA dynamic inflection point. A larger pullback could find support at the 200 SMA near the triangle top as well.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. The gap between the indicators is also widening to reflect stronger bullish momentum.

RSI is still heading lower though, so the price might follow suit while sellers have the upper hand. This oscillator has a bit of ground to cover before hitting the oversold region to signal exhaustion among sellers. Turning back up could confirm that buyers are regaining control and could push for a move back to the swing high at 0.095.

Stochastic is just dipping into the oversold region to show that sellers are tired and could be willing to let buyers take over.

Hints that IBM could make a special announcement involving Stellar Lumens has caused the price to skyrocket, along of course with the general direction among cryptocurrencies these days.

Jesse Lund, Head of Blockchain Development & Digital Currencies at IBM, shared:

World Wire is differentiating itself from other solutions… in our approach to supporting a whole variety of digital assets which range from cryptocurrencies…[to] central bank-issued digital currencies.

He is scheduled to keynote a major event in Singapore and will start off by “talking about digital assets in the future and what Stellar is all about.”

Images courtesy of TradingView