XLM price eyes 55% breakout if Stellar bulls can flip one crucial barrier
- XLM price shows that it is approaching a massive supply zone, ranging from $0.39 to $0.43.
- A decisive daily close above $0.43 will confirm the start of a new uptrend to $0.60.
- A breakdown of the $0.36 support floor will invalidate the bullish thesis.
XLM price has been stuck trading under a crucial blockade for nearly five months. The situation is set to change soon, however, as Stellar coils up for an explosive breakout.
XLM price to explode soon
XLM price is taking a second jab at the $0.43 resistance barrier after failing on September 6. The inability of buyers to break through led to a 41% correction. Stellar seems to have made a bold comeback, however, as it is currently retesting the $0.39 to $0.43 supply zone, harboring the said resistance level.
A decisive daily close above $0.43, followed by a successful retest of this hurdle will confirm the start of an uptrend. In this situation, investors can expect XLM price to target the $0.50 level at first, after a 15% ascent.
Clearing that hurdle will propel the remittance token to $0.60, constituting a 55% ascent from the current position. While some market participants might book profits there, there is a possibility for XLM price to extend its climb even further to $0.71.
XLM/USDT 1-day chart
Regardless of the optimism around XLM price, a failure to push through the $0.39 to $0.43 supply area will signal weakness among the bulls. It could also indicate that the majority of holders are booking profits.
If this selling pressure pushes XLM price to produce a decisive close below $0.36, it will create a lower low, invalidating the bullish thesis.
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.
