The XLM price is performing well today as we head into the weekend. Currently trading around $0.53, the cryptocurrency has pumped 11% in the last 24 hours.
Analyst “Rose” updated the XLM price prediction and setup in a viral tweet, drawing attention from crypto enthusiasts.
XLM Price Outlook
The XLM/USDT chart reveals an intriguing technical setup that suggests potential upward momentum. Currently trading at approximately 0.5, the price appears to be in a corrective phase with a potentially bullish structure.
The chart utilizes Fibonacci retracement levels as key indicators for potential support and resistance. A critical support zone has been identified at 0.39121 USDT, which coincides with the 0.786 Fibonacci retracement and historical price consolidation areas. This level could present an attractive entry point for traders.
So, the XLM chart unveils a fascinating harmonic movement, with the price potentially completing its corrective wave near the 0.39121 zone before reversing upward. This corrective pattern isn’t happening in isolation – it actually aligns with the broader uptrend visible in earlier candlestick patterns.
Traders who understand these structural nuances see this as a potential setup where the XLM price might be gathering momentum for a significant move, using this consolidation as a launching pad for the next bullish wave.
Potential resistance targets have been mapped out, with first targets ranging from 0.59578 USDT to 0.86991 USDT. Descending trendlines suggest a continuation of the corrective move towards the support zone, with a potential breakout indicating bullish momentum.
Risk management is crucial in this setup. A stop-loss is suggested below 0.32677 USDT, which helps minimize potential losses if the support level fails to hold. The analysis suggests that buyers may step in at the identified support zone, potentially initiating a price reversal.
Read also: Buying Hedera (HBAR) Could Be Better than Stellar (XLM): Here’s Why
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