XLM Price Prediction: Stellar Key Technical Outlook Aims for $1.6
- Stellar has lifted off the ascending triangle’s x-axis resistance, kick-starting another uptrend.
- Technical levels are ripe for XLM to hit highs around $1.6 in the medium-term.
- Stalling under $0.7 or $0.8 could result in a corrective move back to $0.5 or $0.35.
Stellar has resumed the uptrend following a period of consolidation. Over the last 24 hours, the cross-border token has traded 9% higher. The momentum appears to be building upon a technical breakout in the wake of stepping above an ascending triangle’s x-axis resistance.
Stellar on the Threshold for Potentially Massive Gains
At the time of writing, Stellar dodders at $0.66 after a break above the ascending triangle’s x-axis. This is a bullish continuation pattern that tends to form during an uptrend. The triangle signifies a period of consolidation before the resumption of the uptrend.
Two trend lines mold the pattern, connecting the relatively equal peaks and the other trend line connecting the higher lows. A breakout occurs before the lines meet. It is worth noting that an increase in trading volume confirms the breakout. Triangles have precise targets measured from the highest to lowest points, as illustrated on the daily chart.
XLM/USD Daily Chart
If technical levels stay intact, Stellar will get into a trajectory for gains eyeing $1.6 as reinforced by the ascending triangle. Besides, other technical levels clearly show that bulls are in control.
The Moving Average Convergence Divergence (MACD) adds weight to the tailwind by moving higher within the positive territory. The wide gap made by the MACD line above the signal line is a huge bullish signal.
Simultaneously, the Relative Strength Index (RSI) emphasizes that bulls control. A recent break into the overbought region confirms the uptrend. On the upside, price action above $0.8 might call for more buy orders as speculation mounts in the market for gains beyond $1 and toward $1.6.
Looking at the Other Side of the Fence
Stellar faces resistance at $0.7 and is bound to hit other walls at $0.8 and $1, respectively. Therefore, the upswing to $1.6 might not come immediately.
Overhead pressure could start to rise if XLM stays under $0.7 longer. Selling orders would also increase as investors cash out for profit. Therefore, Stellar might drop to seek support at $0.5 and $0.35 in that order.