XLM Price Forecast: Stellar could revisit $0.41 if critical support level holds

• XLM price is nearing the end of a consolidation pattern and hints at a 40% surge.
• However, a close below the crucial support level at $0.27 could potentially crash Stellar’s price by 20%.

Stellar is trading at $0.28 after a retracement from its recent highs. The correction seems promising as a confluence of bullish indicators suggests that XLM price is ready for lift-off.

XLM price gears up for another bull rally

Stellar price hints at a breakout from a descending parallel channel where it has been contained over the past few days. However, it must first overcome multiple resistance barriers presented by the short and the mid-length EMAs. 

A close above the $0.30 level would confirm the upswing that will likely see XLM price retest the recent high of $0.41.

Adding credence to the bullish scenario is the SuperTrend’s buy signal presented on January 4. As long as XLM price continues to trade above the $0.27 support level, this technical index will continue to favor the bulls and lead to higher highs. 

XLM/USD 1-hour chart

It is worth noting that an hourly candlestick close below $0.27 would invalidate the optimistic outlook. Breaching the long-length EMA as well as this support level may result in further selling, which can trigger a 20% drop.

On its way down, XLM price could find support around $0.21.