The price of XLM is not showing any signs of recovery as it trades at the range low of $0.196.
If the support level at $0.272 is broken, the price could drop 15% to 0.228.
The bearish thesis will be invalidated if Stellar breaks through the range high of $0.303.
Since mid-May, the price of XLM has been on a major downturn, indicating that buyers are few. Stellar has been trading towards the lower range as a result, and attempts to revert to the mean have been unsuccessful.
On June 21, the price of XLM fell below the May 23 swing low of $0.272 to make a bottom at $0.198. The remittance token has been slowly recovering due to a lack of buying pressure. Stellar has broken through the crucial $0.272 barrier, however it is now being retested.
The remittance token’s ability to surge higher is hampered by the volatile nature of the crypto market. Any short-term sell pressure will be enough to send the XLM price past the support level.
In this instance, Stellar could be dragged to the 50% Fibonacci retracement line at $0.250. The price of XLM could drop to $0.239 or $0.228 if the support floor is broken.
There is a chance for reversal if the bulls save Stellar here. In a bearish scenario, the range low at $0.198 or the swing low at $0.196 on May 19 can be tested.
4-hour chart of XLM/USDT
A bounce from $0.272 will, on the other hand, indicate investor interest. A surge in purchasing pressure here might push the price of XLM towards the range high of $0.303.
The bearish argument will be refuted if the bulls break past this level. In this event, Stellar will most certainly rise to $0.343, a 25% increase from its current price of $0.274./n
