XLM Price Prediction: Stellar is under heavy pressure as bears target $0.36
|- XLM price momentum is weakening as it continues consolidating after peaking at $0.61 on February 13.
- Losing the 50 four-hour moving average as support could see Stellar take a 23% nosedive.
- Nonetheless, this cryptocurrency could advance higher if bulls defend the 50 four-hour moving average.
XLM price saw a roughly 400% surge since the beginning of the year. Since investors have taken advantage of the rising price action to book profits, the increasing selling pressure appears to be wearing down Stellar’s market value.
XLM price is in the vicinity of a potential sell-off
XLM price has been consolidating for the past three days within a descending triangle on its 4-hour chart. The ongoing stagnation phase is reaching a pivotal point as Stellar moves closer to the triangle’s apex.
Although the 50 four-hour moving average is currently serving as stable support alongside the triangle’s x-axis, the current market structure suggests massive losses on the horizon.
The descending triangle forecasts that a spike in selling pressure could see XLM price take a 23% nosedive. If validated, Stellar would target $0.37 upon the break of the $0.47 support level.
This target is determined by measuring the height of the descending triangle’s y-axis and adding that distance to the breakout point.
XLM/USDT 4-hour chart
Regardless of the bearish outlook, investors must not turn a blind eye to the possibility of an upswing. A rebound from the 50 four-hour moving average could push Stellar's market value into higher highs.
A sudden increase in upward pressure that allows XLM price to slice through the triangle's hypotenuse at $0.50 may be significant enough to cause FOMO among investors.
In which case, Stellar could be looking at a 23% jump that sends it close to the recent yearly highs of $0.61.
XLM/USDT 4-hour chart
Due to the ambiguous outlook that XLM price presents, it is imperative that investors wait for a decisive 4-hour candlestick close outside of the $0.50-$0.47 range. Moving past this price pocket will determine where Stellar is heading next.
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.