The XLM price set equal lows at $0.228, indicating a trend reversal.
A 25% rise to a swing high of $0.286 appears possible if the sidelined investors step up.
If Stellar breaks below the range low of $0.199, a bearish scenario may emerge.
Since establishing a swing high on June 29, the price of XLM has been steadily declining. The downswing has been beneficial since it has formed a double bottom by causing the second swing low along a vital support barrier. This pattern is bullish and indicates that an upswing is imminent.
This outlook is bolstered by the bullish setup on the flagship cryptocurrency.
The price of XLM has dropped by 25% in the last two weeks, settling at $0.228. This is the second swing low created since June 22, making it a reversal zone with a high chance.
The probable bottom created on Bitcoin, which might translate to altcoins, adds to this picture. As a result, investors can expect Stellar bulls to initiate a 25% advance, pushing the price toward $0.286, the first key resistance mark.
XLM prices may reach $0.303 in some situations, especially if buyers can create a decisive 6-hour candlestick close over $0.286.
6-hour chart of XLM/USDT
While there are signs of life in the upswing narrative, it is dependent on the idea that $0.228 is the bottom. The upswing will be delayed if there is a rise in selling pressure that pulls the price of XLM below it.
While this move may allow a retest of $0.218 to occur, it has no bearing on the bulls’ ambitions. The bullish thesis will be invalidated if the range low at $0.199 is broken.
In the event of such a move, investors should expect a 9 percent drop to $0.180./n
