- XLM price faces a confluence of resistance in the middle of the trading range at $ 0.367.
- A crucial 6 hour candlestick close above $ 0.367 could see a 40% surge to $ 0.496.
- Breaking the USD 0.322 support barrier could undermine the bullish outlook for Stellar.
XLM price rises as it trades below two critical levels of resistance. A break out of this consolidation could go up and lead to massive gains or a collapse leading to a sell off.
XLM price is approaching the breakout
XLM price has been in a slow downtrend since Aug 16, making two lower highs while making a roughly equal low at $ 0.343. Drawing a trend line connecting the two swing highs on August 16 and 22 shows that going up will be difficult.
Headwind for an upward move is the 50% Fibonacci retracement level at $ 0.367, which also appears to depress the area for movement in XLM price.
However, given the bullish structure of the cryptocurrency market, investors can expect a bullish breakout. A key close above the confluence of these barriers at $ 0.367 confirms the start of an uptrend.
The resistance levels at $ 0.411, $ 0.444, and $ 0.496 are three key targets the bulls are looking to hit in the short term.
A rise to $ 0.496 would represent a 40% rally from its current position.
XLM / USDT 6-hour chart
On the flip side, if the bears take over and break the support barrier at $ 0.343, XLM price will rise to a stable support level at $ 0.322.
A key 6-hour candlestick close below $ 0.322 will create a lower low, invalidate the bullish thesis and potentially cause the 17% drop to $ 0.265.
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