- XLM price shows extreme resilience as it tagged the demand zone extending from $0.474 to $0.503.
- A quick bounce from this level could set the stage for a subsequent swing high near $0.588.
- The bullish outlook will face invalidation upon the breakdown of the support level at $0.470.
XLM price is on track to set up a higher high that will serve as a foundation for its upcoming advance.
XLM price primed for an upswing
On the 4-hour chart, XLM price found support as it bounced off the 100 four-hour Simple Moving Average (SMA) at $0.496. The resulting uptick has flipped the confluence of 50 and the 200 SMA at $0.517 into support, indicating that the short-term momentum is rising faster.
Stellar is currently facing a stiff resistance level at $0.533, a decisive close above which will propel it by 10% to the supply zone that stretches from $0.588 to $0.611.
If the bullish momentum guides XLM price beyond this level, the local top at $0.69 will be the next target.
XLM/USDT 4-hour chart
On the flip side, a reentry into the demand zone that slices through the said SMAs will signal an intense sell-off. If such a scenario were to evolve, the remittance token could slide to $0.470.
A breakdown of this barrier will indicate that the bears have overrun the buyers and that a new downtrend is in play. Under these circumstances, XLM price could slide 8% to $0.436.
