XLM Price Prediction: Stellar recovery thwarted as threat of deep correction looms


  • XLM price dropped 13% as the entire market took a downturn.
  • Stellar is trying to find a foothold above the swing low formed on May 29 at $0.343.
  • While an upswing may seem likely, the sell-off could continue.

XLM price entered a deep sell-off as it sliced through a crucial support level. While it appears to have found support on the recent swing low, things could get ugly fast if the sellers continue to dump their holdings.

XLM price might sweep range lows

XLM price is currently trading at $0.344 after sliding 13% over the past 12 hours. This sell-off comes as the entire market structure for many cryptocurrencies was half-assed as they tried to recover from the May 19 and May 23 crashes.

In an optimistic scenario, the intermediate support levels at $0.327 and $0.30 could stop the bleeding and serve as a platform for reversal.

However, from the looks of it, this downswing may not be over. A worst-case scenario could see Stellar price retest or sweep the range low at $0.274 formed due to the May 23 crash.

Perhaps, a reversal that stems around $0.274 would have more oomph than if it originated from the intermediate support barriers mentioned above.

Therefore, investors should keep an eye out for a continuation of this sell-off.

XLM/USDT 4-hour chart

XLM/USDT 4-hour chart

On the flip side, if XLM price manages to ignore the market conditions and produces a decisive close above the 50% Fibonacci retracement level at $0.372, it would invalidate the bearish outlook and signal the presence of buyers.

Sustained trading above this range would indicate that the recovery has begun. In such a case, Stellar price could retest the swing highs along the way, but the buyers would target the supply zone’s lower limit, which nearly coincides with the range high at $0.47.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu enters 96% bull run as whales continue accumulating SHIB

Ethereum whale bought $11.5 million worth of SHIB tokens on Tuesday. Shiba Inu token has reached 783,739 holders, large wallet investors accumulate SHIB tokens through the dip. SHIB was briefly the cryptocurrency with the largest turnover on exchanges Binance and Coinbase on Monday.

More Shiba Inu News

Three reasons why MATIC price will breakout to a new all-time high at $4.5

MATIC price breached a crucial resistance level that has prevented it from rallying four times over the past four months. The recent attempt seems to have an extra oomph behind it, hinting that this run-up could trigger a massive move.

More Polygon News

XLM price eyes 55% breakout if Stellar bulls can flip one crucial barrier

XLM price has been stuck trading under a crucial blockade for nearly five months. The situation is set to change soon, however, as Stellar coils up for an explosive breakout.

More Stellar Lumens News

Terra's Do Kwon files lawsuit against SEC while analysts turn bullish on LUNA

Do Kwon, Terraform Labs CEO, was served a subpoena by the SEC while appearing at Messari's Mainnet conference. According to Do Kwon and Terraform Labs' lawsuit against the SEC, the regulatory agency lacks jurisdiction over the plaintiffs. 

More Terra News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP