Stellar Price Prediction: XLM Technicals Send Numerous Buy Signals as $0.8 Beckons
- Stellar holds support at the 100 SMA, preventing losses from extending to $0.6.
- XLM recovery is underway within the confines of an ascending parallel channel.
Stellar dropped during the weekend in tandem with cryptocurrencies like Bitcoin and Ethereum. The cross-border money transfer token had tested the resistance at $8 before market instability forced a correction. Following crucial support provided by the 100 Simple Moving Average (SMA) on the four-hour chart, speculation for higher price levels toward $1 appears to be back.
Stellar revamps on finding support
At the time of writing, XLM trades at $0.69 amid a potentially colossal liftoff from the critical support at the 50 SMA. The ascending parallel channel’s lower edge cements this anchor zone, hinting at a continued upward-facing trend.
Currently, the price holds above the 50 SMA while bulls focus on lifting above the channel’s middle boundary hurdle. A daily close beyond $0.7 will also attract more investors into the market as speculation for gains to $0.8 and $1 soars.
XLM/USD four-hour chart
The recovery is validated by the Relative Strength Index (RSI) following the bounce from the support at 40. As the trend strength index crosses above the midline and commences the journey toward the overbought area, Stellar’s price action will acclimate to the upside.
Amid the rebound from the primary support, the SuperTrend has flashed a buy signal. This call to buy manifested in the indicator flipping green and sliding under the price. When used alongside other technical levels and chart patterns, the SuperTrend helps traders make investment decisions such as shorting or long an asset.
For instance, the current call to buy shows that Stellar will likely recover toward $0.8. However, investors should consider waiting for a confirmed break above $0.7 before going all-in on Stellar.
XLM/USD four-hour chart
The recovery to $0.8 depends on the bulls’ ability to stay above $0.7 in the coming sessions. If push comes to shove, the 50 SMA support must be defended. Otherwise, the Moving Average Convergence Divergence (MACD) hints at another correction, especially with the MACD line (blue) staying under the signal line.
Note that testing the support at the 100 SMA could leave Stellar vulnerable to losses eyeing $0.4.