XLM Price Forecast: Stellar hints at a quick bullish reversal
- XLM price has gone from $0.64 to $0.28 within minutes.
- This cryptocurrency reached a price level not seen since December 2020.
- Still, Stellar holds above a crucial support level.
XLM price registered a historical fall of more than 56.50% on May 19. While investors continue shivering in fear, Stellar has stabilized and seems primed to rebound.
XLM price to recover and maintain the uptrend
Stellar price action seems to be contained in an ascending parallel channel since the beginning of the year.
Each time XLM has dropped to the channel’s lower boundary since then, it rebounds to the middle or upper edge. From this point, it tends to retrace to the lower support, which is consistent with the characteristics of a channel.
The recent 56.50% that XLM price experienced could be considered an outlier as long as it remains trading above $0.48. If Stellar manages to keep this area as support, it might have the strength to rebound toward the channel’s middle or upper boundary.
These areas of resistance sit at $0.66 and $0.94, respectively.
XLM/USDt 3-day chart
Failing to hold above the channel’s lower edge at $0.48 would likely invalidate the optimistic outlook. If this were to happen, XLM price might drop again to revisit the recent low of $0.28.
Author
FXStreet Team
FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
