Stellar Price Prediction: XLM aims for $0.3 as bulls buy the dip

Stellar price had a massive 18% sell-off on January 21 as the entire crypto market collapsed.
Bulls managed to buy the dip and pushed the digital asset above a crucial resistance level.

Stellar was trading sideways for close to two weeks before the recent sell-off. In previous articles, the potential of a massive breakout or breakdown was discussed as the Bollinger Bands were extremely squeezed.

Stellar price crashes, bulls see an opportunity to buy the dip

Although Stellar price plummeted by more than 18% in just 24 hours, from a high of $0.294 to a low of $0.227, bulls bought the dip quickly. XLM is already trading at $0.276 at the time of writing, almost gaining all back in less than 24 hours.

XLM/USD daily chart

This is certainly a major indicator that the bulls are very much alive; however, they still need to establish a few short-term uptrends. The most significant resistance point on the 4-hour chart is located at $0.29, which coincides with the 50-SMA and the 100-SMA levels. A breakout above this point would be a clear shift in momentum for the bulls with the potential to drive Stellar price up to $0.32.

XLM/USD 4-hour chart

On the other hand, a rejection from $0.29 could also lead XLM into a new leg down as there is little support below $0.30. The most significant level for the crypto to move downwards is located at $0.227.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.