XLM Price Forecast: Stellar primed for a 30% breakout
- Stellar price moves closer to a breakout from a symmetrical triangle pattern.
- A 30% upswing in XLM can be expected after a decisive close above the $0.43 level.
- The Bollinger bands show that a close outside of the no-trade zone ranging from $0.38 to $0.43 will improve XLM’s volatility.
XLM has been stagnant for over the past two weeks, but volatility is about to strike back.
XLM price prepares to breakout
Aggressive buyers and sellers have caused Stellar to form a series of lower highs and higher lows. By connecting these pivot points using trendlines, it seems like XLM price developed a symmetrical triangle pattern on its 4-hour chart.
This consolidation pattern forecasts that Stellar is primed for a 30% price movement as the asset trudges closer towards the triangle’s apex. But its inability to determine the direction of the trend, suggests that the $0.43 to $0.40 range is a reasonable no-trade zone.
A 4-hour candlestick close above this price pocket could lead to an upswing to $0.55, but a decisive close below it will trigger a sell-off to $0.28.
XLM/USDT 4-hour chart
It is worth noting that the 50, 100, and 200 four-hour moving averages are currently hovering above XLM price. Therefore, the confluence of these trend-following indicators could deter any short-term bullish momentum.
XLM must breach the supply barrier posed by these indicators to see any substantial growth because failing to do so will be catastrophic for the bulls.
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.
