+ 2.15
+ 0.62%
+ 3.22
+ 0.95%
+ 2.53
+ 0.6%
+ 0.23
+ 0.16%

After False Breakout, Stellar Lumens Stages Nasty Reversal

May 13, 2021 11:46 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Stellar Lumens (CRYPTO:XLM) had a false breakout Wednesday and a big move lower followed.

False breakouts happen when it looks like a resistance level will break, but the buyers quickly run out of steam and the sellers overpower them.

A reason for this is the use of buy-stop orders. These are buy orders that are placed above the current market. Traders use these orders when they think a market may move higher, but don’t want to commit their money until the new trend forms.

For example, when XLM was trading around 60 cents, traders may have placed their buy stop orders at 67 cents. They can see that 66 cents had been resistance in April. They think that if XLM can break this level, it will continue to move higher.

An abundance of these buy orders was triggered when XLM hit 67 cents. This caused the rapid move higher, but other buyers didn’t come into the market like expected and a big move lower followed.

If XLM rallies, there’s a good chance it hits resistance at 66 cents once again.


For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.

Related Articles

Crypto Bank Nexo Lists Polkadot, Lets Users Earn 8% APY

Crypto bank Next integrated Polkadot (CRYPTO: DOT), with support for buying, selling, earning interest, or borrowing against the coin. What Happened: According to an announcement shared with Benzinga, Nexo customers will be able to earn up to 8% interest and borrow against DOT at just 6.9% APR within the platform. read more

A Simple NFT Avatar Maker Grows Its Own Tokenomics

NFT crypto art has taken the world by storm and is now the usual suspect across the headlines of every news publication on the web. Although, the current state of the NFT is not in its final form. Given the pace of blockchain development, the long-awaited dynamic NFTs are finally upon us. read more

Valiant Eagle, Inc. Presses Forward With ABA Canada Expansion, Launches State-of-the-Art NFT Platform, Fungy And Hurrah Domains

Everyone loves to be entertained in some form or another. Our media-centric world has created new outlets and forms of entertainment. However, more traditional media & entertainment, such as TV programming, online videos, and internet-related activities, continue to see strong projected growth over the next several years. read more

GDA Capital And Leading Organizations Host Next Top Blockchain Startup Competition

As the blockchain and cryptocurrency industry continues its accelerated growth over the next few years, established platforms have started encouraging new development teams. The expertise, network, and funds needed for an entrepreneurial endeavor are not easy to come by. read more