XLM Price Prediction: Stellar ponders 45% ascent after approaching critical support level
|- XLM price is hovering above the $0.343 support barrier and shows willingness to move higher.
- A higher high above the August 16 swing point at $0.411 will confirm a new leg’s beginning.
- The bullish thesis will face invalidation if Stellar fails to reclaim $0.30 after a break below it.
XLM price has retraced after setting up a swing high on August 16 and is already showing signs of revival. However, investors need to exercise caution as Stellar dipped below the trading range’s midpoint.
XLM price awaits a trigger
XLM price rallied 55% from August 5 to August 16 as it sliced through the 50% Fibonacci retracement level at $0.366 and set up a swing high at $0.411. However, due to the general cryptocurrency market taking a hit, XLM price has retraced roughly 21% but is currently hovering above the $0.343 support level.
This foothold served as a significant foothold and resistance since January 6. Therefore, investors can expect this barrier to hold and potentially kick-start a new uptrend.
Assuming the buyers make a comeback here, XLM price needs to tackle the range high at $0.411. A decisive daily candlestick close above this swing point will confirm the start of a new leg-up.
If this were to happen, Stellar path would have a chance to take a stab at the $0.444 and $0.496 ceilings. A retest of $0.496 would mean a 46% ascent from $0.343.
XLM/USDT 1-day chart
Regardless of the optimism around the $0.343 support level, a potential spike in selling pressure that pushes XLM price to produce a decisive daily candlestick close below it would pose serious threats to the upside narrative.
A breakdown of the $0.295 support level will invalidate the bullish thesis and could trigger a further descent to $0.265.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.