The dearth of buyers in the XLM market has prevented it from regaining the range bottom of $0.274.
The commencement of an uptrend will be signaled by a decisive 4-hour candlestick closing above $0.274.
A negative scenario could emerge if Stellar makes a lower low at $0.228.
Since May 23, the price of XLM has been on a downward trend. Any attempts to move above the range’s midpoint have proven fruitless. Furthermore, the last drop, which occurred between June 20 and 23, put it below the lower end of its trading range, indicating a pessimistic outlook.
Stellar is attempting an upsurge if it can retake a key resistance level after a minor uptick.
Since June 3, the price of XLM has been in a downward trend. In fact, Stellar hasn’t made any greater highs since May 16, giving investors a rough picture of how they think about Stellar as an investment.
A significant 4-hour candlestick close above the range bottom at $0.274 will suggest a resumption of positive momentum, regardless of the lack of optimism around XLM pricing. Stellar bulls may be able to push the remittance token toward the immediate resistance level of $0.286 in this event.
If the purchasing pressure continues after a breach of his supply level, the price of XLM might reach $0.303, a swing high recorded on June 21.
Such a situation would allow the price of XLM to attempt to break out of the downtrend and begin an uptrend. If the buyers can create a swing high over $0.303, it will entice previously uninterested investors to join on board, resulting in massive bid orders. Such a change of events might be the catalyst that propels the remittance token to $0.352, a 28 percent increase from the range bottom.
4-hour chart of XLM/USDT
Failure to rise above the range low of $0.274 on the other hand, will suggest that the sellers are still in control of the market. In this circumstance, the price of XLM is likely to retest the swing low of $0.228 recorded on June 26.
The bullish thesis will be invalidated if $0.228 is breached, triggering a 13 percent drop to $0.199.
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