XLM Price Prediction: Stellar At The Threshold Preparing For Launch Beyond $0.3
- XLM price nears massive technical breakout that could send it to $0.32.
- A golden cross pattern reinforced the bullish outlook as odds for an upswing increased.
Stellar slowed down the price action birthed at the beginning of the week. Bulls had yearned for a breakdown at the beginning of last week, where XLM plunged to $0.2. The recovery that came into the picture saw bulls regain control, shattering various resistance zones at $0.225, $0.24, and $0.26.
Nonetheless, the price action hit a barrier at $0.28, poking holes into the bulls’ boat. Substantial support has been established at $0.255. This zone ensures that Stellar’s downside is protected and bearish advances are limited.
XLM Price Poised For Gains Toward $0.32
Despite the sluggish price action, Stellar seems ready for another leg up. The four-hour chart illustrated the formation of a rectangle pattern. Most technical analysts believe that this pattern can result in a significant move. However, the rectangle does not have a defined bearish or bullish breakout.
Therefore, traders must watch for the action below or above the pattern. For example, Stellar will be catapulted further if the price makes a four-hour close above the rectangle. The odds for a breakout to $0.3 are already high based, especially with the bulls working hard to shatter the barrier at $0.28.
XLM/USD four-hour chart
The exact timeframe shows the formation of a golden cross pattern. This technical indicator forms when a short-term moving average, like the 50 SMA, crossed above a long-term moving average (200 SMA). Traders often look out for this pattern to validated an uptrend and the price consolidating at a higher level. At times, the golden cross marks the beginning of a bull market.
Subsequently, Stellar’s four-hour chart shows the 50 SMA crossing above the 200 SMA. As this pattern confirms, the price action will flip bullish. Hence, the above rectangle breakout will benefit from this formation, thereby boosting XLM for the ultimate swing above $0.3 and $0.32.
The Moving Average Convergence Divergence (MACD) indicator is just about to confirm a buy signal in the four-hour timeframe. More buyers will join Stellar’s market as the 12-day EMA crossed above the 26-day EMA. Note that the MACD is holding above the mean line; this move north affirms the bullish narrative.
XLM/USD four-hour chart
According to the Relative Strength Index (RSI), buyers have the upper hand and are pretty aggressive. As the RSI closes the gap to the overbought region, more buy orders will be triggered, sending XLM significantly upward.