XLM price can rally 65% if Stellar bulls can push through $0.43
- XLM price has been on an uptrend for five days and is ready to take on a crucial supply zone, ranging from $0.39 to $0.43.
- A decisive close above this barrier could trigger a 65% ascent to $0.71.
- If Stellar produces a lower low below $0.30, it will invalidate the bullish thesis.
XLM price has been trading under a stiff resistance barrier for roughly nearly three months. However, the recent run-up suggests that Stellar is ready to take on this barrier. Doing so will catalyze a massive bull run, propelling the altcoin higher.
XLM price ready to take on a crucial hurdle
XLM price stayed below the $0.42 resistance barrier for three months and has failed to move higher after four failed attempts. However, the recent upswing after a double bottom at $0.31 indicates that Stellar could be ready to make its move.
A decisive daily close above $0.39 to $0.43 supply zone will indicate a resurgence of buyers and an affinity to move higher. In such a case, XLM price will first make a run at the immediate resistance barrier at $0.50 after a 15% run-up.
Other barriers that XLM price could tag include $0.59 and $0.71 after 36% and 65% advance from $0.43. While this move is enticing, investors should wait for a close above $0.43 as a confirmation of the bull rally’s start.
XLM/USDT 1-day chart
On the other hand, if XLM price fails to slice through the $0.39 to $0.43 supply zone, it will indicate a weakness among the bulls. Here, Stellar could either consolidate around the $0.36 support floor.
However, a decisive daily close below $0.30 XLM price will create a lower low, suggesting that the trend change is likely. In such a situation, Stellar could drop nearly 20% to $0.25, where it will give the uptrend another try.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
