XLM Price Prediction: Stellar seeks 20% breakout if critical level cracks
- The XLM price is contained inside a descending triangle pattern on the 12-hour chart.
- The digital asset is on the verge of a 20% breakout towards $0.5.
- Failure to climb above the key resistance trend line will drive the XLM price down to $0.35.
XLM has been trading inside a tightening range since the beginning of March, and it is now ready for a breakout. There is only one key resistance level that separates Stellar from new highs at $0.5.
XLM price needs $0.42 for a significant breakout
On the 12-hour chart, XLM has established a descending triangle pattern with its resistance trend line formed at $0.42. The digital asset formed an uptrend on the 12-hour chart, which gives bulls the upper hand.
XLM/USD 12-hour chart
A breakout above $0.42 should quickly drive the XLM price toward a high of $0.50, a 20% move calculated using the height of the pattern as a reference point. There will be practically no barriers above $0.42 for Stellar.
XLM/USD 12-hour chart
On the other hand, a rejection from the upper boundary of the pattern will most likely push XLM down to the lower trend line at $0.356. Losing this key support level will drive Stellar toward a low of $0.28.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
