With rising price uncertainty in the cryptocurrency space, will XLM price experience a strong bullish reversal this week? Or will the altcoin break below its important support trend line and drop to lower support levels?
XLM price forms a bullish flag pattern!
The price of Stellar soared over 14% during the trading session, with a trading volume of $4.233 billion, recovering the $0.50 mark. Additionally, with the recent bullish candlestick chart, this altcoin has formed a flag pattern in the 1D time frame, indicating a significant price uptrend.
TradingView: XLM/USDT
On the daily time frame, the Relative Strength Index (RSI) continues to hover above the overbought range. This highlights an increase in buying pressure for the altcoin, surpassing selling pressure in the cryptocurrency market.
Moreover, the EMA 50/200 daily moving averages have shown a sustained upward trend after experiencing a golden cross earlier this month. This suggests that the altcoin may continue to appreciate in the near future.
Will the price of Stellar reach a new annual high?
If the bullish sentiment persists, the price of XLM tokens will break through its important resistance level of $0.50 and rise to the upper limit of $0.60. Maintaining a price above this level may set the stage for the altcoin to retest its upper limit of $0.70.
Conversely, if the bears outperform the bulls, Stellar will retest the support trend line of the flag pattern. Furthermore, if the bears dominate the cryptocurrency space, it may lead to a drop to the lower support level of $0.40.
