XLM Price Prediction: Stellar primed for 55% bull rally

XLM price is preparing for a massive upswing that could take it to pre-crash levels at $0.643.
The bullish divergence between Stellar price and OBV and a potential bullish crossover on the MACD add credence to this thesis.
A breakdown of the support barrier at $0.342 will trigger a bearish outlook.

XLM price began its uptrend as it created a higher low, setting up a bullish divergence between a crucial volume indicator. Now a continuation of this uptrend could take Stellar to the levels seen on May 19.

XLM price hints at a blast-off soon

XLM price created a local bottom on May 23 at $0.338 and another one on May 30 at $0.372. While Stellar set up higher lows, the On-Balance-Volume (OBV) indicator set up a lower low, creating a bullish divergence relative to the price. Therefore, investors can expect XLM price to rally.

Further cementing this bullish outlook is the Moving Average Convergence Divergence (MACD) indicator, whose fast-length moving average (12-day) is vying for a move above the slow-length moving average (26-day). If such a move were to happen, it would represent a bullish crossover.

This development suggests that the short-term bullish momentum is rising faster, adding credence to the bullish thesis explained above.

Therefore, XLM price seems ready to rise 55% to tag $0.643 after slicing through critical resistance levels at $0.497 and $0.566, respectively.

XLM/USDT 1-day chart

If XLM price sets up a lower low below $0.362, it will signify a weakening buying pressure. However, a breakdown of the support level at $0.342 will invalidate the bullish thesis detailed above.

In that case, investors can expect Stellar price to move sideways or sweep the lows here.

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