XLM Price Prediction: Stellar prepares for 40% climb

XLM price is traversing a falling wedge pattern, hinting at a bullish breakout.
A decisive close above $0.393 will confirm the start of a new uptrend.
If Stellar breaks below the $0.315 support barrier, it will invalidate the bullish thesis.

XLM price is showing signs of a breakout from a bullish pattern that could kick-start a massive upswing. However, Stellar needs to clear significant barriers before it embarks on the journey. Failure to do so will delay the rally and, in some cases, even invalidate the bullish thesis.

XLM price awaits a trigger

XLM price has set up roughly three higher highs and four lower lows since August 13. Drawing a trend line that connects these swing points reveals the formation of a falling wedge pattern. This technical setup has a bullish bias and forecasts a 17% upswing, obtained by measuring the distance between the first swing high and low. Adding this distance to the breakout point at $0.354 reveals a target of $0.416.

However, a significant chunk of resistance lies around $0.393. Clearing this barrier will confirm the start of an uptrend and propel XLM to $0.416 or the resistance level at $0.430.

A decisive 4-hour candlestick close above $0.430 will open the path to $0.468, constituting a roughly 40% upswing from the current position.

XLM/USDT 4-hour chart

Regardless of the bullish outlook, if XLM price fails to hold above the rising wedge’s upper trend line, it may indicate that the current breakout was a fake upswing. In such case, Stellar might retrace to retest the lower trend line of the falling wedge or the support level at $0.338.

While the buyers are likely to make a comeback at $0.338, failing to hold above $0.315 will disprove the bullish thesis.

This move might also trigger a 13% crash to $0.272.

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.