Stellar saw its price nearing a retest of the $0.168 mark inside a declining wedge, and the upcoming sessions can see XLM in a break-or-make condition. A move beneath the nearest support might translate to undesired losses by clearing the patch towards the $0.1617 mark.
A potential upsurge from the closest foothold would position Stellar for a near-term revival rally. While writing this content, XLM traded near $0.1739, surging 1.91% over the past 24 hours.
Stellar Daily Timeframe
XLM plummeted to consolidate inside the range between $0.168 and $0.39 for more than a year. That came after pulling a 180 near the $0.8 mark. The bearish phase saw the token forming a downward channel on the daily chart as Stellar lost approximately 63.4% (since November 10) to hit 13-month lows on February 24.
Nevertheless, the exponential moving average ribbons constricted most recovery action within the past five months. Nevertheless, the bullish revival in mid-March triggered a much-desired uptick that stopped at $0.23. sellers dominated since then, catalyzing a plunging wedge drop within the last month.
As the wedge neared the 16-month-long foothold near $0.1688, Steller might repeat history, initiating a near-term bullish run. However, the increasing EMA Ribbons gap may see the rally stopped by the boundary of its POC (Point of Control).
Reasoning
The Relative Strength Index reflected a massive selling edge as the indicator saw a sharp downside move beneath the mid-line. Closing under the 36-level might trigger recovery from the base at 32.
Meanwhile, the bearish Chaikin Money Flow presented higher highs on the daily chart within the past four days, revealing a bearish divergence with XLM price. However, the on-balance volume maintained its grounds regardless of the latest sell-offs.
Final Thought
Considering the stability of the nearest support and the falling wedge formation, Stellar might overcome the wedge and test its Point of Control. Nevertheless, the Chaikin Money Flow’s bearish divergence might delay the expected recovery with an immediate support retest.
Lastly, enthusiasts should watch broad market reactions and XLM’s on-chain metrics for profitable moves.
Feel free to share your views in the comment section below.
