- XLM price has been trading sideways in a flat channel for more than a month.
- A step above the top trendline of the setup forecasts a 20% bull rally to $ 0.52.
- Stelar could fall 11% to $ 0.31 if the lower bound of the technical formation is broken.
The XLM price suggests an upswing as it is a critical level of support.
XLM price eye reversal
XLM price has made three swing highs that have tapped resistance at $ 0.43 since February 23. Similarly, three swing lows formed over the same period rebounded from the USD 0.33 support barrier.
A shallow channel appears to be formed by connecting the swing highs and lows using trend lines. This setup forecasts a 20% rebound to $ 0.52 if it crosses the top trendline at $ 0.43.
The latest attempt has been rejected by the upper bound and is currently trading around the midline of the flat channel at $ 0.39. A recovery from this point seems likely given the recent buy signal from the SuperTrend indicator.
Hence, a jump off the midline at $ 0.39 or the immediate support at $ 0.38 could push the XLM price to the upper bound. A spike in upward momentum leading to a critical close above $ 0.43 on the 12-hour chart will confirm an uptrend.
In such a case, Stellar is likely to gain 20% to meet its intended target at $ 0.52.
XLM / USD 12 hour chart
The low social volume, which can be perceived as a bullish sign from a dissenting perspective, gives the bullish outlook more credibility. A rise in prices followed by a sudden surge in social volume often marks the peak values of the cycles.
A low social volume therefore creates a perfect scenario for a rise in Stellar price.
Stellar Social Volume Diagram
A sell-off to the lower limit at $ 0.35 is likely and plausible. However, if the XLM price drops convincingly below this level, the bullish thesis will get into trouble. A critical close below $ 0.33 invalidates the positive outlook and triggers a sell-off of the immediate support at $ 0.31.