XLM price stares at 40% upswing if Stellar can breach crucial resistance confluence
- XLM price is facing a confluence of resistance at the trading range’s midpoint at $0.367.
- A decisive 6-hour candlestick close above $0.367 could lead to a 40% upswing to $0.496.
- A breakdown of the $0.322 support barrier might invalidate the bullish outlook for Stellar.
XLM price is coiling up as it trades below two crucial resistance levels. A breakout from this consolidation could head higher, leading to massive gains or a breakdown that causes a sell-off.
XLM price inches closer to breakout
XLM price has been on a slow downtrend since August 16 and has formed two lower highs while forming a somewhat equal low around $0.343. Drawing a trend line connecting the two swing highs formed on August 16 and 22 reveals that moving higher will be tough.
Adding headwinds to an upswing move is the 50% Fibonacci retracement level at $0.367, which also seems to be squeezing the area for XLM price to move.
However, considering the bullish structure of the cryptocurrency market, investors can expect a bullish breakout. A decisive close above the confluence of these barriers at $0.367 will confirm the start of an uptrend.
The resistance levels at $0.411, $0.444 and $0.496 are three crucial targets that the bulls will aim to conquer in the short term.
A move to $0.496 would constitute a 40% rally from its current position.
XLM/USDT 6-hour chart
On the other hand, if the bears take over, leading to a breakdown of the $0.343 support barrier, it will push XLM price to a stable support level at $0.322.
A decisive 6-hour candlestick close below $0.322 will create a lower low, invalidating the bullish thesis and potentially triggering the 17% crash to $0.265.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
