XLM Price Analysis: Stellar eyes 24% reversal to key resistance level
- XLM price bounced off the 200-day MA at $0.360, triggered an upswing.
- Stellar might potentially continue its rally to surge 24% and tag the 50-day MA at $0.480.
- A breakdown of the support level at $0.314 indicates an invalidation of the bullish case.
XLM price is currently bouncing off a critical support level, which could potentially invoke a minor bull run to the immediate resistance level.
XLM price looks to rally higher
XLM price dropped 27% after losing momentum on May 26. This downtrend pushed the remittance token from $0.470 to $0.387, where it currently trades after ricocheting from the 200-day Moving Average (MA) at $0.360.
If the market continues to remain bullish without massive sell-offs, it is highly likely, XLM price will continue to trend higher. At least, a 21% rise to the recent swing high at $0.470 seems likely.
However, a sudden spike in buying pressure could push Stellar to retest the 100-day MA at $0.480. This move would represent a 24% rally from the current position at $0.388.
Although the development detailed above is likely, the resistance level at $0.456 could stop XLM price dead in its tracks or even summon a reversal.
Therefore, investors need to keep close eyes on this barrier. However, there is a chance XLM price will hit the ball out of the park if it produces a decisive daily close above $0.505. Such a move would affirm the bullishness in the market despite the recent flash crashes but would lure the sidelined investors to jump in.
In that case, XLM price might rally 6.5% to tag the 50-day SMA at $0.538.
While XLM price shows a massive bias to the bulls after the recent low, a breakdown of the 200-day MA at $0.360 will signify the inability of the buyers to hold the market up,
However, the bullish explained above will bear no fruition if the $0.314 support barrier is breached.
