The price of XLM is being supported by an upward trend line that dates back to June 22.
The intermediate $0.267 level is holding as short-term support, therefore the correction isn’t a concern right now.
We’re seeing some profit-taking in markets in general after a couple days of uninterrupted rises.
The price of XLM has rallied off intermediate support and appears to be on track to reach $0.30.
Last week, the price of XLM had a difficult week, falling below $0.20. The level was held, and Stellar has slowly but steadily risen from it. It emphasizes the need of large numbers and psychological levels once more.
On the 27th and 28th of June, several tests of the blue ascending trend line produced a triangle. The XLM price was so strong that it even broke through the orange falling trend line. It saw a retest and a rebound back up toward $0.26 after the clean break.
Buyers have been highly aware of these technical levels and have consistently demonstrated their interest in Stellar by lighting a large green candle. When the price of XLM touched $0.20, $0.24, and the blue trend line on June 28, as well as when it bounced off the intermediate support at $0.267, it revealed this.
Overall, market attitude was highly risky, with the Nasdaq and S&P500 achieving new all-time highs, which aided the XLM price to almost hit $0.30. However, since the Asian open this morning, Stellar has fallen a little due to profit-taking in the markets.
We’ll have to wait till the morning bell to see how markets are feeling and whether they can break out of this profit-taking period and resume their upward march. If that’s the case, the price of XLM might finish the triangle formation and reach $0.3 before the end of the week.
6-hour chart of XLM/USD
Even if the XML price breaks through the short-term support level of $0.267, we still have the blue trend line to support us near $0.26. If that level also breaks way, a retest of the orange falling trend line near $0.24 is likely. When markets are moving away from risk and stocks appear to be falling, this could be the situation.
Expect a retest of the $0.20 barrier by next week if markets move into complete sell-off mode for a few days./n
