XLM Price Forecast: Stellar could revisit $0.41 if critical support level holds
- XLM price is nearing the end of a consolidation pattern and hints at a 40% surge.
- However, a close below the crucial support level at $0.27 could potentially crash Stellar’s price by 20%.
Stellar is trading at $0.28 after a retracement from its recent highs. The correction seems promising as a confluence of bullish indicators suggests that XLM price is ready for lift-off.
XLM price gears up for another bull rally
Stellar price hints at a breakout from a descending parallel channel where it has been contained over the past few days. However, it must first overcome multiple resistance barriers presented by the short and the mid-length EMAs.
A close above the $0.30 level would confirm the upswing that will likely see XLM price retest the recent high of $0.41.
Adding credence to the bullish scenario is the SuperTrend’s buy signal presented on January 4. As long as XLM price continues to trade above the $0.27 support level, this technical index will continue to favor the bulls and lead to higher highs.
XLM/USD 1-hour chart
It is worth noting that an hourly candlestick close below $0.27 would invalidate the optimistic outlook. Breaching the long-length EMA as well as this support level may result in further selling, which can trigger a 20% drop.
On its way down, XLM price could find support around $0.21.
Author
FXStreet Team
FXStreet
