Home XLM Price Forecast: Stellar 400% upswing stalls risking breakdown to $0.41
Crypto News

XLM Price Forecast: Stellar 400% upswing stalls risking breakdown to $0.41

  • Stellar is on the verge of a potential breakdown to $0.41 after rejection at $0.61.
  • The TD Sequential indicator has flashed several sell signals, adding weight to the correction.
  • XLM will resume the upswing to new yearly highs if buyers push above $0.61.

Stellar has been rejected from the yearly high at $0.61, opening the door for a potential correction. The cross border token has already incurred some losses, forcing it to retreat to price levels under $0.6. At the time of writing, XLM is teetering at $0.55 amid the bulls’ persistent push to secure higher support and resume the uptrend.

Stellar could retreat to $0.41 support before resuming the uptrend

Following the rejection from $0.61, XLM’s least resistance path is downwards and may lead to more declines if the uptrend fails to resume soon. The Relative Strength Index (RSI) on the 4-hour chart adds credibility to the potential breakdown after being purged from the overbought region.

From the current price level, the next formidable support target is the former resistance at $0.41. The 50 Simple Moving Average (SMA) on the 4-hour chart will also absorb the selling pressure, limiting the losses.

XLM/USD 4-hour chart

XLM/USD 4-hour chart

The TD Sequential indicator has presented a sell signal on the 12-hour and daily charts. The calls to sell manifested in green nine candlesticks. If validated, Stellar will continue with the breakdown targeting $0.41. The TD Sequential sell signals identify instances when an asset’s uptrend is nearing exhaustion, thus favoring a potential correction.

XLM/USD 12-hour/daily chart

XLM/USD 12-hour/daily chart

Looking at the other side of the fence

It is worth mentioning that Stellar’s rally will remain intact if the immediate resistance at $0.61 is broken. Trading above this zone will confirm to the investors that XLM is ready for another swing upwards. Support at $0.5 must also hold to ensure that losses do not extend to $0.41.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.