XLM price could skyrocket 45% if it can reclaim this critical barrier
- XLM price has deviated below its range low after a brutal 34% sell-off recently.
- If Stellar reclaims the range low at $0.275, it could kick-start a 45% upswing to $0.404.
- However, a failure to push past $0.275 could continue the descent toward the demand zone of $0.184 to $0.200.
XLM price has slipped below the range low after the recent crash. Despite the minor recovery rally, Stellar is trading below it. Going forward, the remittance token’s future is dependent on this barrier and will play a pivotal role in deciding its short-term future.
XLM price at crossroads
XLM price has been on a massive downtrend since May 19 and shows no signs of a concrete recovery so far. The recent drop exacerbated its position as Stellar slid below the swing low at $0.275, painting a bearish picture.
However, XLM price still has hopes of a massive upswing, especially if it reclaims the range low at $0.275. In such a case, Stellar bulls will eye the 50% Fibonacci retracement level at $0.404, a 45% upswing.
This rally will not be a cakewalk due to the resistance levels at $0.303 and $0.352. Therefore, investors need to keep a close eye on these barriers.
XLM/USDT 6-hour chart
While the upswing narrative seems like a stretch, XLM price must keep above $0.247, the open of the bullish order block (red candlestick) on June 22.
A dip into the demand zone extending from $0.184 to $0.200 will not necessarily invalidate the bullish outlook but weaken it. Therefore, a decisive 4-hour candlestick close below $0.184 might kick-start a 9% downswing to $0.167.
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.
