Home XLM Price Prediction: Stellar poised for a 60% upswing
Crypto News

XLM Price Prediction: Stellar poised for a 60% upswing

  • XLM price is consolidating inside a bull flag pattern after the recent market crash.
  • The Tom DeMarket Sequential indicator has flashed a buy signal hinting at a reversal of bearish momentum.
  • A decisive close above the flag at $0.47 opens the possibility of a 60% bull rally.

XLM price is recovering after dropping nearly 42% from February 22 to 23. Regardless of the short-term bearish pressure, both technical and on-chain indicators suggest that bulls will push Stellar higher.

XLM price needs to blast through stiff resistance

XLM price action witnessed from late January to-date has resulted in the formation of a bull flag pattern. The initial 165% upswing from $0.23 to $0.60 created the “flag pole,” while the consolidation from $0.60 to $0.34 via a series of lower highs and lower lows has formed the “flag.”

This setup forecasts a 60% surge, which is determined by measuring the flag pole’s length and adding it to the breakout point at $0.47. If validated by an increase in buying pressure, XLM price could rise to $0.77.

The Tom DeMark (TD) Sequential indicator adds credence to the optimistic outlook. This technical index presented a buy signal on XLM’s 4-hour chart, anticipating a one to four candlesticks upswing.

XLM/USDT 4-hour chart

XLM/USDT 4-hour chart

In addition to the technicals, on-chain metrics are also painting a bullish scenario for XLM price.

For example, Stellar’s on-chain volume saw a 47% increase on February 22. This metric rose another 15% from $2.8 billion to $3.2 billion in the next two days, showing healthy network activity. 

In the meantime, XLM price dropped, creating a bullish divergence against its on-chain volume.

XLM on-chain volume chart

XLM on-chain volume chart

The recent 32% upswing in development activity fuels the bullish narrative as well. Investors tend to see an increase in this metric as a buy signal since it usually leads to a protocol update, product launch, or some sort of important announcement.

When considering the technical and on-chain metrics previously evaluated, it seems like Stellar price is poised for an upswing.

XLM developer activity chart

XLM developer activity chart

Regardless, investors should note the presence of a cluster of resistance barriers ranging from $0.43 to $0.46, formed by the short, mid, and long-length exponential moving averages (EMA). Rejection at this cluster could delay the bull flag’s breakout. 

But if XLM price slices through the support barrier at $0.35, it would invalidate the bullish thesis and trigger another sell-off.

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.