- Stellar looks forward to a breakout as the Fibonacci index presents possible inflection points.
- A breakout above the 38.2% Fibonacci retracement level could result in an upswing to $0.12.
Stellar lost a significant chunk of its August peak at $0.12 before establishing primary support at $0.067. Recovery from the anchor has not been ballistic but gradual. On the other hand, the upside has been capped under the 200 Simple Moving Average on the 12-hour chart. Consolidation continues to dominate the market, but selected technical indexes hint at a possible breakout with the price hitting the tipping point.
Stellar consolidation approaches an ultimate end
Meanwhile, the $1.6 billion digital asset is changing hands at $0.08. In the last 24 hours, XLM has attracted $139 million in trading volume. Little progress can be reported as the price has been stuck in consolidation for several weeks. The Relative Strength Index gives credibility to the sideways price action as it levels at the midline.
The 50 SMA caps stellar’s immediate upside. The price action above this moving average is likely to retest the next hurdle at $0.085. Further, gains will depend on Stellar’s ability to sustain price action above the 200 SMA.
 (5)-637407631088620785.png)
XLM/USD 12-hour chart
The Fibonacci retracement levels on the 3-day chart, accounting for the last swing high of $0.119 and a swing low of $0.026, confirms that XLM is drawing closer to the tipping point. For now, consolidation is still taking place between the 38.2% and the 50% Fibs. Trading above the upper limit of the range (38.2% Fibo) might result in a great liftoff to the peak in August.
XLM/USD 3-day chart
On the downside, selling activity would be triggered if the price tumbled beneath the 50% Fibonacci. The bearish leg is likely to extend to the tentative support at $0.06, as highlighted by the 61.8% Fibonacci. If massive declines come into the picture, Stellar could shoot downwards, eyeing $0.05.
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.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.