XLM Price Prediction: Stellar ponders 45% ascent after approaching critical support level

XLM price has retraced after setting up a swing high on August 16 and is already showing signs of revival. However, investors need to exercise caution as Stellar dipped below the trading range’s midpoint.

XLM price awaits a trigger

XLM price rallied 55% from August 5 to August 16 as it sliced through the 50% Fibonacci retracement level at $0.366 and set up a swing high at $0.411. However, due to the general cryptocurrency market taking a hit, XLM price has retraced roughly 21% but is currently hovering above the $0.343 support level.

This foothold served as a significant foothold and resistance since January 6. Therefore, investors can expect this barrier to hold and potentially kick-start a new uptrend.

Assuming the buyers make a comeback here, XLM price needs to tackle the range high at $0.411. A decisive daily candlestick close above this swing point will confirm the start of a new leg-up.

If this were to happen, Stellar path would have a chance to take a stab at the $0.444 and $0.496 ceilings. A retest of $0.496 would mean a 46% ascent from $0.343.

XLM/USDT 1-day chart

Regardless of the optimism around the $0.343 support level, a potential spike in selling pressure that pushes XLM price to produce a decisive daily candlestick close below it would pose serious threats to the upside narrative.

A breakdown of the $0.295 support level will invalidate the bullish thesis and could trigger a further descent to $0.265.