XLM price eyes 20% ascent as Stellar bulls reappear

XLM price seems to be coming around after almost a week of consolidation.
A resurgence of buying pressure is likely to push Stellar up by 21% to $0.388.
If the sellers breach the $0.299 support floor, it will invalidate the bullish thesis.

XLM price experienced a nasty drop between September 6 and September 7. However, the buyers stepped in cauterized the wound. Since then, Stellar has been coiling up, waiting for a massive and volatile move.

XLM price to restart its uptrend

XLM price dropped 38% over 16 hours starting on September 6. However, the recovery pushed Stellar back to $0.33, where it has been consolidating over the past week. While the sideways movement shows no directional bias yet, the overall market structure looks bullish for altcoins.

Therefore, investors can expect XLM price to shatter through the immediate resistance level at $0.343 to kick-start the new uptrend.

Doing so will open the path for Stellar bulls, but this journey up is not without hurdles. The buyers need to slice through the 50% Fibonacci retracement level at $0.367, followed by a retest of the $0.388 ceiling.

This move from the current position to $0.388 would constitute a 21% ascent, but in some cases Stellar could continue the climb to tag the $0.411 hurdle.

XLM/USDT 4-hour chart

Regardless of the bullish outlook in the general cryptocurrency market, a massive spike in selling pressure could undo the optimism. A failure to slice through the $0.322 might knock XLM price down to $0.299.

A decisive 4-hour candlestick close below this support floor will invalidate the bullish thesis. In such a case, Stellar could revisit the September 7 swing low at $0.268.

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.