Stellar Price Prediction: XLM rally might develop another 30% price surge

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TL;DR Breakdown

  • Stellar price prediction shows XLM yesterday managed to record the most significant one-day price appreciation since early January.
  • A rumor is doing rounds on social media, hypothesizing that the Central Bank Digital Currency might be integrated on Stellar’s blockchain platform.
  • XLM is currently facing a considerable near-term resistance due to the clashing of the Fibo levels.

Mid-March, Stellar managed to close with a mallet pattern that created the perfect foundation for a price rally. End of March, XLM managed to surge upwards by 8 percent, and now it is up 20 percent.

Presently, Stellar’s rally has slowed down above the meeting point of the 0.79 retracement level at $0.55 and the 3.62 Fibo extensions at $0.55. Also, the Stellar network is currently undergoing a node blackout due to unknown reasons.

Stellar Price Prediction: General price overview

On checking Stellar’s price movement for March, it appears the crypto coin traded on a low-key daily price activity and a parallel channel on low volume. Stellar’s March price action was a typical case of price reduction before price expansion. Today, XLM is at a technical modulation end that might make the digital asset consolidate several days before showing signs of surging upwards. A significant price rally means Stellar should bypass the resistance levels outlined by the 3.6 extension level, the 0.77 retracement level, and the all-time milestone at $0.61.

If Stellar manages to bypass the resistance level, investors should be on the lookout for the $0.7 4.62 extension level. After this level will be the 1.5 extension level of February’s dip at $0.72, where a prediction of a 30 percent surge comes into the picture.

Stellar price movement in the past 24 hours

Stellar Price Prediction: XLM rally might develop another 30% price surge 1
Source: TradingView

According to Stella’s 24-hour chart, XLM is currently experiencing a spike in selling pressure, a factor that is threatening XLM’s current price rally. However, if Stellar fails to close below the $0.4 mark, it will trigger a selling spree that will kick start a bearish narrative.

In such a case, Stellar risks depreciating by 7 percent. However, if the digital asset manages to close above the $0.5 mark, it will open the door for a further price rally as there are no practical barriers above the $0.6 region.

Stellar 4-hour chart

Stellar Price Prediction: XLM rally might develop another 30% price surge 2
Source: TradingView

Adding credence to the bullish narrative is the persistent low social volume Stellar is currently experiencing. From a counter-sentiment outlook, this can be regarded as a bullish sign. Usually, a sudden surge in price followed by an upsurge in social volumes tends to record cycle tops. That is why a low social volume creates an ideal scenario for a price uptrend in XLM price.

Conclusion

It is worth noting that no prediction is always 100 percent perfect. Therefore, XLM might fail to surge upwards and break down after facing resistance at the significant resistance level. Stellar’s crucial support is at the juncture of January’s high at $0.43 and the channel’s highs. Stellar also enjoys another layer of support at the junction of the 100-day SMA at the $0.35 mark and the channel’s lows. A further price dip below the channel’s low will make February’s lows converge at $0.31, with XLM’s 0.5 percent retracement level at $0.32.

In other stories making headlines in the Stellar board is the ongoing outage of nodes for the Stellar Development Foundation (SDF). The impact of the blackout has led SDF to stop validating transactions on Stellar’s blockchain platform.

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