Stellar Price Analysis: XLM faces uphill battle as selling pressure mounts


  • Stellar price is currently bounded inside a symmetrical triangle pattern on the 12-hour chart.
  • The digital asset has bounced off the lower trendline support level and aims for $0.185. 
  • On-chain metrics suggest that XLM could be poised for a major correction.

After setting a high at $0.233 on November 25, Stellar entered a period of consolidation and remains trading inside a tightening pattern on the 12-hour chart. Several indicators present conflicting data favoring bears and bulls.

Stellar price could jump to $0.185 before a major correction

Stellar is contained inside a symmetrical triangle pattern on the 12-hour chart. The digital asset has just defended the lower trendline support level at $0.165 and aims to rebound higher. The bulls need to reconquer the 50-SMA level as support.

xlm price

XLM/USD 12-hour chart

Pushing through the 50-SMA will most likely lead XLM towards the upper trendline resistance level. A breakout above this point can quickly drive Stellar price towards $0.27, a 44% jump using the height of the pattern as a reference point. 

However, it seems that the 30-day volatility metric has jumped to levels not seen since January 2018 when Stellar experienced a massive correction from its all-time high at $0.88. The metric could be hinting at another potential major pullback for XLM.

xlm pice

XLM 30-day volatility chart

Bears have managed to push Stellar price below the 50-SMA and the digital asset might be on the verge of a breakdown below the critical support level at $0.165. Losing this level will push XLM down to $0.093.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: ETH sizes the spotlight as BTC and XRP contemplate retracement

The hype around Coinbase’s IPO was matched by Bitcoin and Ethereum, which surged to new all-time highs. On the other hand, Ripple price faced an abrupt stop as investors began booking profits.

More Bitcoin News

Stellar aims for new all-time highs if key support holds

Stellar has enjoyed an amazing rally since the beginning of 2021 and hit a yearly high at $0.69 on April 14. The digital asset must hold a crucial support level to continue with the uptrend and reach new highs.

More Stellar Lumens News

Cardano resets before the next leg up to new all-time highs

Cardano price faced exhaustion of bid orders as it hit the base of an ascending triangle at $1.48. A minor retracement to the immediate demand barrier at $1.34 seems likely. Shattering the resistance level at $1.48 forecasts a new all-time high for ADA.

More Cardano News

Algorand Price Prediction: ALGO vies for 85% advance upon the breach of its consolidation

Algorand price is traversing a bullish pennant, hinting at an 85% upswing to $2.83. A decisive close above $1.53 will signal a breach of the pennant’s upper trend line. ALGO will kick-start a new downtrend if it slices through the 50% Fibonacci retracement level at $1.03.

More Algorand News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: SEC commissioner cozies up to BTC ETF, on-chain metrics reset making way for volatile move

Bitcoin’s mainstream adoption has soared over the last couple of months, with institutions like Visa, Goldman Sachs, Morgan Stanley, and others dipping their toes in the BTC markets. Likewise, prices look primed to advance further despite the ongoing consolidation phase.

Read the weekly forecast

BTC

ETH

XRP