The XLM correction rally pivoted from the $0.187 support level. Under the influence of an inverted head and shoulder pattern, the buyers would drive the altcoin to an overhead ceiling of $0.24. However, the coin price may face multiple EMA barriers, which could stall the upcoming rally.
Key points:
- An upturn in 20-day EMA would offer a bullish crossover with 50-day EMA
- The XLM price forms an inverted head and shoulder pattern.
- The intraday trading volume in the XLM is $458.7 Million, indicating a 39.3% gain.
Source- Tradingview
Responding to the evident bullish RSI divergence, the XLM/USDT pair gave an upside breakout from the descending trendline on March 16th. The recovery rally soared the coin price by 34.5% and hit the overhead resistance of $0.24.
However, with the Bitcoin price dumping to the $40000 support, the XLM price turned down from the overhead resistance and discounted by 22.8%. The buyers stalled the correction rally at $0.185 and reflected a new recovery attempt which soared the coin price to $0.2.
Furthermore, the technical chart displayed an inverted head and shoulder pattern formation. Following the bullish reversal pattern, the altcoin would ascend back to the $0.24 mark.
A successful breakout from this $0.24 or $0.25 resistance would trigger this pattern and plump the XLM price by another 20-25%.
Technical indicator
In a bearish sequence, the slight decline in the crucial EMAs(20, 50, 100, and 200) suggests an overall bear trend. Moreover, the 20-and-50-day EMA aligned at the $0.206 mark tries to undermine the bullish rally.
However, the RSI(38) slope reentering the bullish territory indicates a bullish sentiment in short-term
- Resistance levels- $0.21, and $0.24
- Support levels- $0.185 and $0.66
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/stellar-price-prediction-xlm-is-set-for-0-24-with-an-inverted-hs-pattern/