- XLM price is hovering above the $0.343 support barrier and shows willingness to move higher.
- A higher high above the August 16 swing point at $0.411 will confirm a new leg’s beginning.
- The bullish thesis will face invalidation if Stellar fails to reclaim $0.30 after a break below it.
XLM price has retraced after setting up a swing high on August 16 and is already showing signs of revival. However, investors need to exercise caution as Stellar dipped below the trading range’s midpoint.
XLM price awaits a trigger
XLM price rallied 55% from August 5 to August 16 as it sliced through the 50% Fibonacci retracement level at $0.366 and set up a swing high at $0.411. However, due to the general cryptocurrency market taking a hit, XLM price has retraced roughly 21% but is currently hovering above the $0.343 support level.
This foothold served as a significant foothold and resistance since January 6. Therefore, investors can expect this barrier to hold and potentially kick-start a new uptrend.
Assuming the buyers make a comeback here, XLM price needs to tackle the range high at $0.411. A decisive daily candlestick close above this swing point will confirm the start of a new leg-up.
If this were to happen, Stellar path would have a chance to take a stab at the $0.444 and $0.496 ceilings. A retest of $0.496 would mean a 46% ascent from $0.343.
XLM/USDT 1-day chart
Regardless of the optimism around the $0.343 support level, a potential spike in selling pressure that pushes XLM price to produce a decisive daily candlestick close below it would pose serious threats to the upside narrative.
A breakdown of the $0.295 support level will invalidate the bullish thesis and could trigger a further descent to $0.265.