XLM Price Prediction: Stellar bulls’ 20% upswing in jeopardy

XLM price has confirmed a 20% rally after it broke out of a descending triangle on March 20.
However, the 200 four-hour moving average (MA) at $0.42 has successfully rejected it.
A breakdown of the triangle’s horizontal resistance level at $0.37 could reverse the optimism around Stellar.

XLM price turned bullish after it confirmed an upward breakout of a technical formation. However, the recent drop may have put a dent in bulls’ plans.

XLM price on the verge of a breakout

XLM price found a stable support barrier at $0.37 after a 32% crash between February 20 and 26. Since then, Stellar has constantly been testing this demand level forming lower highs. By drawing a trendline connecting the swing highs and the flat supply barrier, a descending triangle pattern seems to arise.

This technical formation forecasts a 20% upswing to $0.48, determined by measuring the distance between the pivot high and low and adding it to the breakout point on $0.40.

Since XLM price sliced through $0.40 on March 20, it confirmed a bullish target of $0.48 and surged nearly 8%. At this point, the remittances token was met with 200 four-hour MA at $0.42, which rejected the upward trajectory.

Now, Stellar is trading above the 100 four-hour MA at $0.40, which coincides with the breakout point. If XLM price slices through this point, it would put the altcoin in a neutral position allowing both bullish and bearish opportunities an equal chance.

Here, if XLM bulls bounce from the triangle’s hypotenuse, it will trigger a bullish outcome. Following this, the 200 four-hour MA also needs to be pierced, which will open up the possibility of the $0.48 target to be achieved.

XLM/USDT 4-hour chart

On the other hand, if XLM price fails to hold above the descending triangle’s baseline at $0.37, a bearish scenario will evolve.

In this case, Stellar could drop 20% to $0.30 if the bears are left unchecked.

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.

Join Telegram