Investors and traders holding Stellar (XLM) may have a reason to rejoice. The payments-based cryptocurrency just broke a significant resistance level and might see a price rise if momentum is sustained. Popular cryptocurrency trader Josh Olszewics, who goes by CarpeNoctom on Twitter, observed Lumens closing above the “Kumo” resistance for the time since 2018.
2D $XLM (USD)
first kumo breakout since 2018 pic.twitter.com/Ep1jRz4LGf
— Josh Olszewicz (@CarpeNoctom) May 2, 2020
Developed in the early 1900s by a Japanese journalist, the so-called “Ichimoku Cloud” indicator is widely used in the cryptocurrency market. Using a proprietary system of moving averages and dynamic support/resistance, the indicator is said to predict future levels where the price is expected to change trend or see significant profit-taking.
A “Kumo” break is significant. The term refers to a cloud-like graphic on trading charts derived by two predictive moving averages. Larger price movements and volatility create bigger “clouds,” indicating a bearish trend ahead.
While Olszewics based his trade on 2-day price data using 20 and 60 moving average parameters, daily data shows XLM already broke out on April 24 for a 12 percent gain to investors.
Interestingly, the daily charts reveal a past Kumo break in February 2020, when price similarly surged upwards but was later subject to massive profit-taking reaching $0.08 prices.
Previously, CryptoSlate reported XLM’s social metrics were positioning the digital currency for an upwards move. Data from Santiment noted Stellar was mentioned higher-than-average levels on social websites and forums.
The metric proved useful as XLM rose over 30 percent since the mention.
Altcoins blessed by halving
Major projects like Lumens, which suffered the consequences of the multi-year bear market by losing over 70 percent of value, are now showing signs of revival.
But despite its falling price, Stellar found use in several projects. Grammy-winning musician Akon is issuing his “Akcoin” currency on the Stellar blockchain, hoping to power a small Kenyan city’s financial service sector with the protocol.
The eleventh-ranked cryptocurrency saw a yearly-high of $0.14 last May, gradually falling to the current $0.06 level at the time of writing. Trade interest remains high regardless, Stellar boasts an average daily volume of $500 million, even coming close to $700 million yesterday as per data on CryptoSlate.
Stellar, currently ranked #11 by market cap, is up 3.48% over the past 24 hours. XLM has a market cap of $1.46B with a 24 hour volume of $616M.
Chart by CryptoCompare
Stellar is up 3.48% over the past 24 hours.
Cover Photo by 金 运 on Unsplash
Posted In: Stellar, Altcoins, Analysis, Price Watch
The above advertisement is an referral link.
Like what you see? Subscribe to CryptoSlate
Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.
Sign up to stay informed
Post-mining his first bitcoins in 2012, there was no looking back for Shaurya Malwa. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrency and blockchain. Using a hard-hitting approach to article writing and crypto-trading, he finds his true self in the world of decentralized ideologies. When not writing, Shaurya builds his culinary skills and trades the big three cryptocurrencies.
View author profile
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Bitcoin 
Ethereum 
Tether 
USD Coin 
BNB 
XRP 
Binance USD 
Cardano 
Solana 
Dogecoin