- XLM/USD remained firm above $0.22 before regaining above $0.26
- The pair is struggling to break past $0.285
- A crucial contracting triangle pattern is forming with resistance near $0.285 on XLM/USD 4-hour chart
- Stellar price could spark a bullish rally if bulls can clear the resistance between $0.285 and $0.30
- A bullish run could be on the cards soon
Stellar Price Prediction: current price overview
Stellar price has displayed encouraging developments above the $0.25 price level against the United States dollar. The XLM/USD pair opened the day with a market price of $0.27139 and a trading volume of $77.339 million. So far, the intraday highest price is $0.27714 after registering an intraday low of $0.26800. At the time of writing, Stellar Lumen XLM is trading at a market price of $0.27072.
The Stellar price dropped by a big 18 percent within 24 hours on January 21 when the entire crypto market collapsed. However, the XLM bulls swooped in and quickly purchased the dip, driving the Stellar price above a vital resistance point, and recovered within 24 hours. This is a clear indication that the bulls are very much present; but they should still set up not many short-term uptrends.
Stellar Price Prediction: XLM/USD pair 4-hour chart
In the above 4-hour chart, the most important resistance is located near $0.285 price level. This price level also coincides with the 50-SMA and 100-SMA. A clear breakout past this resistance would indicate a change in momentum for the buyers pushing the XLM/USD pair towards $0.320 price level.
On the contrary, if the selling pressure near $0.285 forces a rejection, it would be catastrophic for the bulls since there is inadequate support below $0.300. The most logical support below can be found near the $0.2270 price level.
Stellar Price Prediction: Is a bullish breakout imminent?
After recovering from the latest dip to climb above the $0.25 and $0.26 resistance levels, there was also a break past the 50 percent Fibonacci retracement levels of the drop from $0.32 swing highs to $0.226 swing low. The XLM/USD pair is currently facing selling pressure near $0.285 and there is a contracting triangle pattern shaping up on the 4-hour chart with resistance near $0.2835.
The triangle’s resistance is close to the 61.8 percent Fib retracement levels of the declining trend from $0.32 swing highs to $0.226 swing lows. If the bulls manage to breakout of this crucial resistance and $0.288, there is a high possibility for further gains. The next crucial sell off point can be found near $0.30, and then $0.32. Breaking past $0.32 could open up way for the XLM/USD pair to surge towards $0.38 and $0.40 price levels.
On the other hand, if Stellar price drops below the triangle, it would head downwards towards $0.227. As mentioned earlier, there is inadequate support under the $0.30 price level.
Meanwhile, German housing decacorn, Vonovia, recently revealed its plan to expand the finance department through the use of Stellar XLM altcoin. The firm announced that it had successfully distributed a fully digital registered bond worthy $24.2 million through the Stellar Network. The price of Stellar XLM is mainly driven by such partnerships.