Technical indicators give XLM traders hope! Will the bulls be able to overcome critical resistance?

Currently, the attention of the crypto market is on XRP and its 'brother' Stellar Lumens (XLM). The announcement that XRP is not a security had a significant impact on the market, pushing the price of XLM above critical resistance lines. The altcoin's price, however, faced a heavy decline after experiencing what appeared to be a brief stumbling point. Currently, it is showing an upward trend once again as prices gain momentum and aim to surpass resistance levels.
XLM price rises again
In the past two months, Stellar Lumens has emerged as one of the best performing cryptocurrencies in terms of market cap and price gains. It managed to experience a remarkable 110% overall price increase, going from the lowest price to the highest price point during this eight-week period. However, recent trends suggest a potential slowdown, indicating that the bullish momentum behind the price may be fatigued.
Despite recent trends, trading volumes remain significantly above the monthly low. This indicates that investor interest is still intact. Additionally, a slight increase in weighted sentiment, according to Santiment data, strengthens the bullish forecasts. The social dominance metric, which has been on the rise lately, is gaining a lot of attention due to Stellar's recent expansion to the Changera App.
Moreover, Stellar continues to expand its market dominance, as announced on the official account. The Stellar-based USD Coin (USDC) stable coin is now available from 322,000 locations. This availability is far greater than that of USDC on Ethereum, which only has 30,180 locations.
Stellar's native token, XLM, is also accessible in 26,221 locations, making it one of the most accessible cryptocurrencies today. Although Stellar competes directly with XRP, it has successfully established its own unique space in the market.
What's next for XLM price?
The altcoin's price dropped below the 50-day Exponential Moving Average (EMA) to approach the horizontal support line at $0.14.
However, the bulls saw this as a lucrative opportunity to take action and stepped in and bought the dip. Thus, they pushed the price above the 50-day EMA line. XLM price continued to rise above multiple Fib channels. The price is steadily approaching the key resistance line as it recently surpassed $0.16.
If buyers manage to continue the current uptrend and push XLM price above the critical resistance at $0.183, the price will likely test the region between $0.21 and $0.22. Also, the rising EMA 20 trendline and the RSI in the positive zone indicate an upside move in the near future.
However, the bullish view may be invalidated if XLM price fails to gain buying pressure near resistance levels. If the price breaks below the $0.138 support, there could be a serious bearish divergence. This will lead to a consolidation around $0.125.
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