- Stellar looks forward to a breakout as the Fibonacci index presents possible inflection points.
- A breakout above the 38.2% Fibonacci retracement level could result in an upswing to $0.12.
Stellar lost a significant chunk of its August peak at $0.12 before establishing primary support at $0.067. Recovery from the anchor has not been ballistic but gradual. On the other hand, the upside has been capped under the 200 Simple Moving Average on the 12-hour chart. Consolidation continues to dominate the market, but selected technical indexes hint at a possible breakout with the price hitting the tipping point.
Stellar consolidation approaches an ultimate end
Meanwhile, the $1.6 billion digital asset is changing hands at $0.08. In the last 24 hours, XLM has attracted $139 million in trading volume. Little progress can be reported as the price has been stuck in consolidation for several weeks. The Relative Strength Index gives credibility to the sideways price action as it levels at the midline.
The 50 SMA caps stellar’s immediate upside. The price action above this moving average is likely to retest the next hurdle at $0.085. Further, gains will depend on Stellar’s ability to sustain price action above the 200 SMA.
 (5)-637407631088620785.png)
XLM/USD 12-hour chart
The Fibonacci retracement levels on the 3-day chart, accounting for the last swing high of $0.119 and a swing low of $0.026, confirms that XLM is drawing closer to the tipping point. For now, consolidation is still taking place between the 38.2% and the 50% Fibs. Trading above the upper limit of the range (38.2% Fibo) might result in a great liftoff to the peak in August.
XLM/USD 3-day chart
On the downside, selling activity would be triggered if the price tumbled beneath the 50% Fibonacci. The bearish leg is likely to extend to the tentative support at $0.06, as highlighted by the 61.8% Fibonacci. If massive declines come into the picture, Stellar could shoot downwards, eyeing $0.05.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?