Stellar (XLM) 16% Recovery Is Possible: Here's How

Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

After a period of volatility, Stellar has been consolidating, and the price action is giving conflicting signals. The asset is testing important support levels that could dictate its next move, and it is currently trading at about $0.38. While a 16% recovery to roughly $0.44-$0.45 is feasible, XLM also runs the risk of further declines if the bearish momentum picks up steam.

Holding above $0.35, which corresponds to the 100 EMA and has historically served as a support zone, is necessary for XLM to start a robust recovery; $0.40, a psychological level that also aligns with short-term moving averages, is the first resistance to break if buying pressure increases. XLM had previously been rejected in the $0.44-$0.45 range, but a successful breakout above $0.40 would move momentum in that direction.

The next significant resistance level, $0.47, may be retested if bulls maintain their momentum. RSI and other important indicators indicate that XLM is getting close to oversold territory, which means that buyers may intervene soon. It is very likely that the market will rebound toward $0.44-$0.45 if volume rises.

Shiba Inu Key Developer Makes Important Shibarium Clarification: Details

It could quickly become bearish if XLM is unable to maintain $0.35. In the past, deeper sell-offs have been avoided by the 200 EMA, which is the next important support at $0.33. XLM would drop to $0.27, the lowest price prior to its November rally, if it were to break below this level. Losses could increase if $0.40 is not recovered quickly as this could also encourage short sellers.

If Bitcoin’s weakness persists, XLM may be pulled toward lower support zones by the overall market decline. For XLM’s next move, the $0.35-$0.40 range is essential. While losing support at $0.35 could lead to $0.33 or even $0.27, holding above this zone would favor a push toward $0.44-$0.45. To determine the direction of the asset, traders should keep a close eye on these levels.

Source link