XLM Price Prediction: Stellar sets up swing high but fails to turn bullish

XLM price surged nearly 13% from the previous swing low to set up a higher high at $0.547.
The recently formed swing high failed to break above crucial resistance levels at $0.551 and $0.566, signaling weak buying pressure.
A 10% pullback to the immediate support barrier at $0.4729 seems likely.

XLM price looks due for a retracement as the bid orders vanish before a critical local top.

XLM price eyes reversal

XLM price saw a swift 32% upswing since April 26, which sliced through a supply barrier at $0.472. However, this ascent fell short of buying pressure a few ticks before another level at $0.551.

Since Stellar failed to shatter this level, the range-bound market structure seems to be intact with a looming downward move.

The demand zone that extends from $0.476 to $0.509 will be the first line of defense for collapsing XLM price. Due to the recent failure to conquer $0.566, the retracement will most like have extra oomph, allowing it to slice through the 100 and the 50 six-hour Simple Moving Averages (SMA) at $0.527 and $0.485, respectively, and trigger a retest of the support barrier at $0.472.

This move is roughly a 10% downswing from the current market value of the remittance token.

XLM/USDT 6-hour chart

Although a retracement doesn’t hurt an upswing, a decisive close below the 200 six-hour SMA at $0.469 will invalidate any bullish bias Stellar has.

If such a turn of events unfolds, investors can expect XLM price to retest the subsequent demand zone that extends from $0.436 to $0.401.

Share: Cryptos feed

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.

Join Telegram