(DAILY NOTION): Can XLM/USD Continue Marching Onwards? Next Mover: U.S. Georgia Senate Runoff Elections

Source: Yahoo Finance

XLM/USD is experiencing a beautiful ascent in the early days of 2021. Over the past 24 hours alone, it has gained 40% after a big breakout above $0.16. At the time of writing, the price is at $0.2163. Current Relative Strength Index (RSI) is in overbought territory at 80. The week’s lowest point was at 19 on Monday when the price experienced a sharp dip to $0.1410 before moving on to the week’s low of $0.1309.

Although the price has been steadily moving upwards since then, analyst Lorenzo Stroe from FX Street predicts that a correction is now due. The TD Sequential Indicator has shown a green ‘8’ candle, which is typically followed by a sell signal.

An interesting point to note is how data from monitoring resource, The Tie, is showing that long-term sentiment for XLM/USD is more favourable than XRP/USD. This is no surprise, given the battle that Ripple is currently facing with the U.S. Securities Exchange Commission. This is also supported by the hike in XLM’s social volume over these past few days, a trend that was last seen way back in February 2019.

Would the Fear of Missing Out (FOMO) open the way for a correction, or can the bulls hold the fort?

At the time of writing, traders are waiting for the final out of U.S. Georgia runoff elections. The result of this election is crucial as it would determine who holds the legislative power in the U.S. and to a certain extent, the tone of Joe Biden’s term as the next U.S. president. The result of this election would also determine if traces of President Trump would still be left in the White House, even after he has left it.

The latest Institute for Supply Management (ISM) Manufacturing Index came in at 60.7 against an expected result of 56.7. This is the highest result since August 2018. It will be interesting to see the results of the nonfarm payrolls due this Friday.

XLM/USD (as of Jan 6, 2021, 9.50 a.m., GMT +8) - $0.2163