- XLM price surged nearly 13% from the previous swing low to set up a higher high at $0.547.
- The recently formed swing high failed to break above crucial resistance levels at $0.551 and $0.566, signaling weak buying pressure.
- A 10% pullback to the immediate support barrier at $0.4729 seems likely.
XLM price looks due for a retracement as the bid orders vanish before a critical local top.
XLM price eyes reversal
XLM price saw a swift 32% upswing since April 26, which sliced through a supply barrier at $0.472. However, this ascent fell short of buying pressure a few ticks before another level at $0.551.
Since Stellar failed to shatter this level, the range-bound market structure seems to be intact with a looming downward move.
The demand zone that extends from $0.476 to $0.509 will be the first line of defense for collapsing XLM price. Due to the recent failure to conquer $0.566, the retracement will most like have extra oomph, allowing it to slice through the 100 and the 50 six-hour Simple Moving Averages (SMA) at $0.527 and $0.485, respectively, and trigger a retest of the support barrier at $0.472.
This move is roughly a 10% downswing from the current market value of the remittance token.
XLM/USDT 6-hour chart
Although a retracement doesn’t hurt an upswing, a decisive close below the 200 six-hour SMA at $0.469 will invalidate any bullish bias Stellar has.
If such a turn of events unfolds, investors can expect XLM price to retest the subsequent demand zone that extends from $0.436 to $0.401.
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