- Stellar price has underperformed when compared to other altcoins as it trades around $0.139.
- A flip of the weekly level at $0.142 could trigger a 60% move to $0.229.
- A breakdown of the $0.107 support level will invalidate the bullish thesis for XLM.
Stellar (XLM) price has been hovering below a critical resistance level for nearly two years. As XLM climbs higher, it contests this hurdle and anticipates a breakout rally.
Also read: Ripple's move above this key level could trigger nearly 50% rally for XRP
Stellar price at pivotal point
Stellar price slipped below the $0.142 support level in mid-May 2022 and has traded below it for nearly two years. Even before May 2022, this barrier served as an important level that kickstarted a 484% rally in late 2020 and mid-2021. Therefore, a retest of this level is critical, and a flip would be crucial to achieving an ascent.
Investors should note that a successful flip of the $0.142 resistance level into a support floor would suggest that Stellar price is due for a rally. In such a case, XLM bulls will most likely eye a retest of the $0.229 level, roughly 60% away.
The Relative Strength Index (RSI) has recovered from dipping below the mean level of 50, suggesting that the bullish momentum is still in play. The Awesome Oscillator (AO) also displays a similar positive outlook.
XLM/USDT 1-week chart
On the other hand, if Stellar price faces another rejection due to selling pressure spike from XLM holders or due to the bearish market outlook, it could fall back to the $0.107 support floor. This level is crucial since it has served as a base for attempting a breakout above $0.142.
If Stellar prices flips this level into a resistance level, it would invalidate the bullish thesis by producing a lower low. In such a case, XLM could crash 35% and tag the range low at $0.069.
Also read: XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
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
LINK price jumps 10% as Chainlink races toward tokenization of funds
Chainlink (LINK) price has remained range-bound for a while, stuck between the $16.00 roadblock to the upside and $13.08 to the downside. However, in light of recent revelations, the token, which powers the verifiable web of the decentralized computing platform, may have further upside potential.
Gaming token Notcoin down by almost 50% after airdrop launch
NOT experienced a rapid decline hours after its anticipated launch on Thursday, shedding almost 50% of its value. This continues the cycle of huge selling pressure faced by cryptocurrency airdrops after their launch, especially the launch of gaming tokens in recent times.
Ethereum drops below $3,000 again, spot ETH ETF sparks debate in crypto community
Ethereum again went below the $3,000 key level on Thursday after posting signs of a rally. The price action follows predictions from the community regarding the SEC's decision on spot ETH ETFs next week.
SUI price defends $0.8880 amid multiple Sui network integrations
Sui (SUI) price failed to heed to the broader market recovery on Wednesday, extending the fall to the $0.8880 support level. However, with multiple network integrations in the works, the altcoin has pivoted around this level and is scaling a recovery.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.