XLM Price Prediction: Stellar puts the worst behind it, eyes 30% upswing

XLM price witnessed a 37% upswing that has pushed it beyond the upper range at $0.609.
Stellar is likely to consolidate around the demand zone extending from $0.595 to $0.631.
Successful injection of buying pressure could propel the remittance token up by 30% to $0.81.

XLM price broke out of a range-bound consolidation and now sits comfortably above it. The immediate support barrier will help Stellar stay afloat before buyers decide to step in.

XLM price looks to consolidate

On the 6-hour chart, XLM price has risen above its local range at $0.609 and formed a demand zone that extends from $0.595 to $0.631. The Momentum Reversal Indicator (MRI) has flashed a preemptive top in the form of a yellow down arrow. This setup forecasts that if the uptrend continues, a reversal could be incoming.

Therefore, a consolidation around the demand barrier mentioned above is the most optimistic scenario. The sideways movement will allow buyers to recuperate, allowing a build-up of bullish momentum, which might eventually lead to a massive spike in XLM price to $0.817.

The local top at $0.695 and the 161.8% Fibonacci retracement level at $0.737 will be critical. Hence, investors need to keep a close eye on these barriers.

XLM/USDT 6-hour chart

The upswing narrative hinges on the fact that the demand zone holds the collapsing XLM price, but a breakdown could lead to a 6% correction to $0.562. However, a solid 6-hour candlestick close below this level would invalidate the bullish outlook and kick-start a bearish one.

Under these conditions, Stellar could retrace to the 50% Fibonacci retracement level at $0.506.

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