XLM Price Forecast: Stellar Bullish Assault Brewing After Holding Support At $0.22
- XLM price must overcome the descending channel’s middle boundary resistance to validate the upswing to $0.26.
- The TD Sequential recently presented a buy signal, inferring recovery is in the offing.
Stellar is focused on regaining the lost ground after a two-week downward action. A comprehensive look at the four-hour chart shows numerous recovery attempts that have not been successful. Meanwhile, the latest drop to $0.22 appears to have resulted in a reflex recoil that may soon close the gap to $0.26.
Can Bulls Nurture Stellar Into Recovery?
The downward action lasted for two weeks, with the last stroke being the mid-week drop to $0.22. A descending parallel pattern appears to be controlling Stellar’s price action, whereby the lower edge protects the downside while the upper boundary stubbornly caps upward movement.
At the time of writing, XLM exchanges hands at $0.228 while buyers fight to break above the middle boundary of the channel. Trading in the upper band will affirm that buyers are in control, triggering more gains toward $0.26.
XLM/USD four-hour chart
The TD Sequential indicator has flashed a buy signal on the same four-hour chart. This call to buy appeared in a red nine candlestick and hints at the overhead pressure diminishing to give for an aggressive bullish front. Realize that most of the previous buy signals were confirmed, leading to massive double-digit gains. Therefore, Stellar may soon settle in the bulls’ hands in readiness of a major liftoff to $0.26.
XLM/USD four-hour chart
Despite the Moving Average Convergence Divergence (MACD) stuck beneath the mean line, signs of a bullish signal continue to ripen. Hence, traders will better position themselves if they watch out for the 12-day exponential moving average (EMA) crossing above the 26-day EMA. In addition, as the MACD closes in on the mean line, the odds for a sustained uptrend will significantly go up.
For now, the focus should be placed on stepping above the hurdle at $0.24, which, if overcome, will enhance the bulls’ efforts toward $0.26 and perhaps $0.3.
It is worth mentioning that failure to break out of the descending parallel pattern may result in another freefall. This time support at $0.22 may not be robust enough to absorb the selling pressure. Farther down, additional support is expected at $0.2 and $0.18, respectively.