- XLM price is preparing for a massive upswing that could take it to pre-crash levels at $0.643.
- The bullish divergence between Stellar price and OBV and a potential bullish crossover on the MACD add credence to this thesis.
- A breakdown of the support barrier at $0.342 will trigger a bearish outlook.
XLM price began its uptrend as it created a higher low, setting up a bullish divergence between a crucial volume indicator. Now a continuation of this uptrend could take Stellar to the levels seen on May 19.
XLM price hints at a blast-off soon
XLM price created a local bottom on May 23 at $0.338 and another one on May 30 at $0.372. While Stellar set up higher lows, the On-Balance-Volume (OBV) indicator set up a lower low, creating a bullish divergence relative to the price. Therefore, investors can expect XLM price to rally.
Further cementing this bullish outlook is the Moving Average Convergence Divergence (MACD) indicator, whose fast-length moving average (12-day) is vying for a move above the slow-length moving average (26-day). If such a move were to happen, it would represent a bullish crossover.
This development suggests that the short-term bullish momentum is rising faster, adding credence to the bullish thesis explained above.
Therefore, XLM price seems ready to rise 55% to tag $0.643 after slicing through critical resistance levels at $0.497 and $0.566, respectively.
XLM/USDT 1-day chart
If XLM price sets up a lower low below $0.362, it will signify a weakening buying pressure. However, a breakdown of the support level at $0.342 will invalidate the bullish thesis detailed above.
In that case, investors can expect Stellar price to move sideways or sweep the lows here.
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