![Ahead of Bitcoin halving, Stellar (XLM) just broke a major resistance level not seen since 2018](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2020/05/stellar-ceiling.jpg&w=70&h=37&q=75)
Ahead of Bitcoin halving, Stellar (XLM) just broke a major resistance level not seen since 2018
![Ahead of Bitcoin halving, Stellar (XLM) just broke a major resistance level not seen since 2018](https://cryptoslate.com/wp-content/uploads/2020/05/stellar-ceiling-768x403.jpg)
Photo by 金 运 on Unsplash
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.
![Daily charts showing kumo breakouts](https://cryptoslate.com/wp-content/uploads/2020/05/download.png)
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.
![Stellar Sentiment Data from Santiment](https://cryptoslate.com/wp-content/uploads/2020/05/Screenshot-2020-04-28-at-11.09.39-1536x590-1.png)
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 Market Data
At the time of press 11:22 am UTC on May. 5, 2020, Stellar is ranked #11 by market cap and the price is up 3.48% over the past 24 hours. Stellar has a market capitalization of $1.46 billion with a 24-hour trading volume of $616 million. Learn more about Stellar ›
Crypto Market Summary
At the time of press 11:22 am UTC on May. 5, 2020, the total crypto market is valued at at $247.14 billion with a 24-hour volume of $151.92 billion. Bitcoin dominance is currently at 66.04%. Learn more about the crypto market ›