As a seasoned crypto investor with over a decade of experience in this dynamic market, I’ve learned to navigate through bull runs and bear markets with equal measure of caution and optimism. The recent performance of Stellar Lumens (XLM) has been nothing short of impressive, especially given its 743% surge from its lowest level this year. However, the current analyst predictions of a potential correction if XLM drops below $0.40 have piqued my interest.
If the XLM price falls below a significant support point, as suggested by one expert, it might trigger a significant bearish shift, potentially undoing around half of the impressive 500% increase seen over the past month.
XLM Price Could Correct: Analyst
Stellar lumens has been a strong performer this year as it jumped to a high of $0.6345, its highest level since May 2021. At its highest point, it was up by over 743% from its lowest level this year.
Many experts are optimistic regarding Stellar’s price forecast, attributing their confidence to its robust fundamentals and technical aspects. In a recent article by Rose Premium, it was suggested that Stellar could surge to around $0.98. This figure is slightly below the significant milestone of $1. If this projection comes true, it would indicate a potential 90% increase in value from its current price level.
Nevertheless, the analyst has cautioned that if XLM’s price falls below $0.40, there could be further decreases, potentially taking the coin down to $0.3235. This represents a potential drop of 35% from its current value.
Stellar Price Analysis: Mean Reversion Is a Key Risk
Each week’s graph indicates an escalating trend for the XLM coin price, with four consecutive weeks showing a dramatic surge. There are hints suggesting it might be shaping into a bullish pennant formation, a frequently recognized pattern in technical analysis. This pattern is characterized by a tall vertical line followed by a symmetrical triangle and typically concludes with a bullish breakout.
If Stellar’s price surpasses the upper boundary of the pennant at approximately $0.6355, it could strengthen the likelihood that the coin will break through its record high of around $0.7960 and potentially reach the significant level of $1, as we forecasted earlier this week.
The potential issue here is that the coin has developed a “hanging man” candlestick configuration. This pattern is identifiable by a long lower wick and a small body, often appearing towards the top of an ongoing trend. Typically, following this pattern, there’s a tendency for a price drop, especially when the value falls below its lower boundary.
An additional potential issue for Stellar’s price is that it may experience a correction, also known as mean reversion. This happens when an asset decreases to its typical or average value. At present, Stellar is significantly above both its 50-week moving average ($0.1567) and its 200-week average ($0.1448). Such a decrease could mean a significant drop of around 70% from the current price level.
Read More
- EUR CAD PREDICTION
- EUR MYR PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- GBP RUB PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- XRP PREDICTION. XRP cryptocurrency
- POL PREDICTION. POL cryptocurrency
- CHR PREDICTION. CHR cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- USD MXN PREDICTION
2024-12-04 15:27