XLM price has nowhere to go but up, as Stellar bulls anticipate 23% gains
- XLM price is bouncing off the 70.5% Fibonacci retracement level at $0.267.
- Reclaiming the $0.315 barrier will open the path for a 23% ascent to $0.342.
- A breakdown of the $0.247 support floor will invalidate the bullish thesis.
XLM price (Stellar) sliced through crucial footholds as it collapsed on September 20. This downswing has pushed Stellar to a perfect launching platform.
XLM price looks primed for an upswing
XLM price dropped roughly 17% over the past 48 hours, slicing through two crucial barriers and retesting another. Currently, Stellar has bounced 4% after tagging the 70.5% Fibonacci retracement level at $0.267. Considering that the overall trend is bullish, the recent dip below the midpoint of the trading range suggests that XLM is at a deep discount after the $0.267 retest.
Therefore, investors can expect a resurgence of buyers leading to a bounce in Stellar price.
However, the uptrend will not be a cakewalk due to the presence of the 62% and 50% Fibonacci retracement levels at $0.287 and $0.315. Flipping these two levels into a support floor will indicate that the bulls mean business.
Such a move will open the path for a run-up to $0.342, constituting a 23% advance from the current position.
XLM/USDT 1-day chart
On the other hand, if XLM price fails to slice through the immediate barrier at $0.287, it will reveal weak buyers. A decisive close below $0.247 or the 79% Fibonacci retracement level will
create a lower low, shifting the directional bias in favor of bears.
This move could trigger further descent from panic sellers, pushing the Stellar price toward the range low at $0.198.
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.
