Stellar Lumens (XLM) Technical Analysis: XLM Price Could be Heading to $0.17, Here’s Why
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Stellar Lumens (XLM) is positioning well for a bullish breakout on the 4-Hour chart against USDT pairing, despite the Stellar network temporarily shutting down last week due to issues with its validator nodes.
For the last 5 days, the price action has been consolidating tightly inside a bullish continuation pennant after correcting from its 15% surge on May 16. Once candles reach maximum consolidation between the two pinching trend lines, we could see XLM buyers eye the $0.17 as a new price target.
Right now XLM is down -0.88% against the US dollar and flagging -1.44% against Bitcoin.
Stellar Lumens (XLM) Price Analysis
On the 4H XLM/USDT chart we can see that the price action has been tracking well inside a triangle pattern and adhering faithfully to key fibonacci retracement levels.
On May 16, after XLM had surged over 30% in 48hrs to a new YTD-high at $0.162, the price action began to pullback as bullish traders could no longer support the uptrend.
Over the next 24hrs, the price action unravelled all the way down to the 0.618 fibonacci level at $0.116 before finding support. At this point, bulls had managed to regain composure and went on to launch a second impulse movement.
From there, buyers ran into strong selling pressure at the 0.236 fibonacci level/ $0.144 which forced a retreat back down to uptrending pennant support.
Using a fibonacci extension tool, we can use the previous swing low, the new YTD-high and the new pullback swing low points to predict the breakout targets for XLM, should the pennant pattern play out in the intended way.
From this we can see that the 0.618 and 0.786 fib extension levels appear to be good targets for the breakout, ($0.162 and $0.175 respectively).
Looking at the 4-Hour momentum indicators, we can see some signals that support this idea:
- The RSI is beginning to flicker upward as buying momentum increases.
- Selling volume on the MACD indicator is beginning to decrease towards the signal line.
Stellar Lumens (XLM) Price Targets
All ROIs are calculated from the asset’s current value at $0.134 (AToW).
PT1: 0.618 Fib extn/ $0.162 (20.90%)
PT2: 0.786 Fib extn/ $0.175 (30.60%)