June 25, 2021

Stellar XLM Edges Closer to a 35% Price Movement

2 min read

Stellar’s price action recommends that volatility is about to strike back.

Excellent Primed for Volatility

XLM’s market price stopped by 50% after reaching a new yearly high of $0.61 on Feb. 13. The downswing appears to have been fueled by a market-wide correction that caused over $6.5 billion in liquidations.

While some altcoins managed to recuperate the losses incurred, Stellar entered a stagnation duration.

The twelfth-largest cryptocurrency by market capitalization has actually been consolidating over the past 2 weeks, making a series of lower highs and higher lows along the method. When drawing a trendline around each pivot point, XLM’s cost action formed a balanced triangle on its 4-hour chart.

Stellar US price chart
XLM/USD on TradingView Outstanding is now edging closer towards the triangle’s apex, showing that a volatile move is underway. A 4-hour candlestick close above

$0.42 or below$0.39 would likely be followed by a 34.50 % relocation in

that instructions. This target is figured out by measuring the height of the triangle’s y-axis and including it to the breakout point. Stiff Resistance Ahead Despite the unclear outlook that Stellar provides, the chances seem to favor the bears.

The parabolic stop and reverse, or “& ldquo; SAR, & rdquo; moved on top of XLM’s cost in late February, which suggests that the pattern changed from bullish to bearish. Till another flip over happens, this trend-following sign will stay bearish.

Only a 4-hour candlestick close above $0.43 will signify the downtrend’s fatigue, based on the stop and reversal system. But a confluence of the short, mid, long-term moving averages around this price level recommends that it will take a significant amount of buying pressure to send out Stellar higher.

Stellar US price chart

XLM/USD on TradingView Traders need to wait for a decisive close beyond the $0.42-$0.39 before entering any trade due to the fact that of the resistance ahead.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.