- Stellar is moving towards an imminent breakthrough from a triangle formation.
- XLM price may move by 7% in either direction.
Stellar (XLM) hit the all-time high at $0.2337 on November 25 amid a significant bullish trend on the cryptocurrency markets and has been drifting down ever since. At the time of writing, XLM/USD is changing hands at $0.184, having lost over 2% in the past 24 hours. Despite the retreat, it is still 15% higher on a week-to-week basis.
Stellar is the 11th largest digital asset with a current market capitalization of $3.9 billion and an average daily trading volume of $504 million. Stellar's trading volumes peaked at $3.7 at the end of November amid a substantial price increase.
Stellar is at a crossroads
From a short-term perspective, Stellar price is moving within a descending triangle pattern on the 1-hour chart. Since this formation is considered to be a bearish signal, XLM may be vulnerable to further losses if the local support created by the lower boundary of the triangle at $0.18 gives way.
A sustainable move below this area will open up to the estimated bearish target of $0.167. This target represents a nearly 7% decline. It is calculated by measuring the distance between the widest point of the triangle and adding it to the breakout point.
XLM/USD 1-hour chart
Meanwhile, a breakthrough above the resistance line created by the upper boundary of the descending triangle formation will negate the immediate bearish scenario and push the price towards $0.193, which is also a 7% move from a breakout point. Once this barrier is out of the way, the psychological $0.2 will come into focus, followed by the all-time high of $0.2337.
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.