• XLM price action consistently is an underperformer amongst its peers.
  • XLM is one of the few big-name cryptocurrencies that has not made new all-time highs (last was January 2018).
  • Upside potential remains high despite a likely pullback.

XLM price continues to pull back from the highs it made on Saturday. There are growing concerns regarding its ability to maintain its present momentum.

XLM price may pullback to test $0.34 as support before resuming move to $0.57

XLM price has a very bullish set up on its $0.01/3-box Point and Figure chart. When XLM hit the $0.42 price level, that was the breach of the dominant bear trend angle on the Point and Figure chart. The result was a shift from bear market conditions to bull market conditions. Additionally, the pattern created a Pole Pattern.

XLM/USD $0.01/3-box Reversal Point and Figure Chart

The hypothetical long opportunity from the Pole Pattern is an entry at the 3-box reversal ($0.40 at the time of posting). Bulls would look for a buy stop order at $0.40 with a  stop-loss order at $0.36. The vertical profit target method in Point and Figure analysis points to XLM price at $0.57 for the profit target.

To invalidate the current bullish setup on the Point and Figure chart, bears will need to push XLM price a lot lower. The current price action suggests that a pullback to Senkou Span B and the Kijun-Sen is likely (both are within the $0.34 value area). Beyond that, bears would need to close XLM price below both the 38.2% Fibonacci retracement and the Cloud at $0.31 to return the market to a bearish outlook.

XLM/USD Daily Ichimoku Chart

However, bears may have difficulty pursuing prices below $0.31 because the second-largest high volume node in the 2021 Volume Profile is within the $0.31 value area.

 


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.

Recommended content


Recommended Content

Editors’ Picks

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?  

More Litecoin News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.

More Bitcoin News
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.

More Cryptocurrencies News
Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.

More Bitcoin News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin 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 ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP