XLM price in search of foothold to advance 33%
- XLM price reveals exhaustion of bullish momentum, leading to a potential retracement to the recent swing.
- A resurgence of buyers here may ignite an upswing that could propel Stellar by 33%.
- If the support level at $0.298 is breached, a bearish thesis might evolve.
XLM price saw a nice leg up as it rallied with the rest of the crypto market on Wednesday. However, the exhaustion of buying pressure seems apparent as red candlesticks evolve. Stellar could slide lower to tag an immediate support barrier or retest the recent swing low.
XLM price eyes a minor retracement
XLM price saw an 18% impulsive move from $0.31 to $0.367 between June 8 and June 10. This rally comes after a massive downswing; therefore, investors seem eager to book profits, leading to a pullback.
This down move could head to the immediate support level at $0.344 and reverse or collect liquidity in the form of sell stops below the recent swing low at $0.324.
The latter move will provide the market makers an extra oomph that could potentially catapult XLM price up by 24% to the 50% Fibonacci retracement level at $0.403.
However, the bulls might extend this run to $0.435, a 33% surge from $0.324. In a highly bullish case, Stellar could tag the 79% Fibonacci retracement level at $0.457.
XLM/USDT 4-hour chart
While the upswing seems likely, a breakdown of the swing low at $0.348, leading to a decisive close below it, will open up the path for more downward moves.
In such a case, if XLM price produces a 4-hour candlestick close below $0.298, it would invalidate the bullish thesis.
If this were to happen, Stellar might slide 8% to tag the range low at $0.272.
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.
