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- 1 Lexicon pharmaceutical price closed at $3.18, while witnessing an increase of +9.66% during the last intraday session.
- 2 LXRX price traded above 20,50,100 and 200-day EMAs.
- 3 The year-to-date return of LXRX stock is 63.92%.
LXRX stock price has been in bullish momentum since the beginning of 2023 rising from the low of $1.91 and forming an annual high at $3.79 on May 5. The LXRX price was stuck in a consolidation zone from the month of March to the end of April, ranging between $2.15 and $2.85.
As soon as May began, LXRX price gained bullish momentum and did a breakout in the upward direction which led to the formation of annual highs. After this, the price entered into a corrective phase and has recently formed support at the $2.85 level.
The immediate resistance for the stock price is $3.25. If bulls can push the price above the resistance level of $3.25, there is a higher probability for the price to head toward the major resistance level of $3.60. Price needs to gain enough bullish momentum to surpass the major resistance and head toward the annual highs.
While on the other hand, if bears enter into the market and push price below the support level of $2.85, LXRX price might again enter the consolidation zone, heading toward the $2.15 region.
Lexicon Pharmaceutical Drug Gets Approved By U.S FDA
The Food and Drug Administration of the United States has approved the Lexicon pharmaceutical drug for a broad treatment of heart failure, including adult patients with type 2 diabetes.
Sotagliflozin, an oral drug, is the company’s first to be approved by FDA, and will be sold under the brand name ‘Inpefa’. The drug will be launched by the end of June and the wholesale price will be almost the same as the existing brands of heart failure medication.
The drug is estimated to generate sales of $112 million by 2025, and about $576 million by 2028.
Will the Price Retest the Annual Highs?
LXRX stock price trades above the 20,50,100 and 200-day EMAs indicating bullish momentum in the price. Also, the 20-day EMA is acting as a support of the LXRX price, which is an indicator of high bullish momentum.
Chaikin money flow score is 0.08 suggesting rising strength in the market. The RSI is currently at 59.10 after declining from the Overbought region suggesting that LXRX price might break above the immediate resistance of the $3.25 level as the bullish momentum is strong in the price.
LXRX price is headed toward the upper band of Bollinger after the 20-Day SMA pushed LXRX price upward.
Conclusion
The market structure and price action is bullish after the FDA approval. The technical indicator suggests that the price might break the recent resistance level and head toward the annual high in the upcoming days. The revenue of Lexicon will increase in upcoming years and slowly it might gain financial stability.
Technical levels
Major support: $2.15 and $2.85
Major resistance: $3.60 and $4
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
