Stellar price prediction: XLM to make a run for $0.293, analyst

TL;DR Breakdown

• Stellar price prediction expects a rise to $0.293.
• Strong support found at $0.124
• Strong resistance currently found at the $0.138.

The Stellar price prediction by Contemplating Crypto suggests that the cryptocurrency’s price will hit the $0.293 mark in a long-term trade. While the cryptocurrency currently trades inside a falling parallel channel, the analyst believes that the XLMUSD pair will break out of the channel and rise towards the horizontal resistance at the top of the trade setup.

1-Day Stellar price analysis

Looking at Stellar’s chart, the cryptocurrency has seen a significant decrease in its price over the past 2 days. The price shows a falling slope which seems to have hit a support level at the $0.1240 mark. During the 24-hour trade, the cryptocurrency hit a high of $0.1388 at the start of the 30th of December. The trading oscillators and indicators show a market for the sellers right now as the cryptocurrency continues to decline under a sell signal.

A sell signal is such in which the asset is suggested to be sold, and then rebought near the target price. In this way, the trader gets both, the asset and the difference in value after and before the selling signal takes place. The cryptocurrency traded well above the $0.132 level for the first half of the day until the cryptocurrency reached the last day for 2020 and observed a bearish momentum.

The major altcoins did see their share of the bears whilst Bitcoin BTC, the cryptocurrency king, observed a brief descent towards the $28200 mark in the afternoon of the 31st of December. The altcoins, of course, followed suit as the cryptocurrency king descended on the charts for the last day of the year.

What to expect from Stellar?

The Trading View analyst Contemplating Crypto is of the opinion that the XLMUSD trading pair is to form an inverse head and shoulders pair on the 2h time frame. In this Stellar price prediction, the inverse H&S pattern was shown to form in a falling parallel channel drawn on the charts. The price has approached the bottom of the channel, and the analyst has dropped trade signals at multiple points in the trading channel.

Per the analyst, the cryptocurrency has recently entered a buy signal and if the cryptocurrency attains enough trade volume, the price will turn bullish and move towards the upper boundary of the channel. If a bounce takes place at the bottom of the channel, then the price will move up. The sell signal is placed at the top of the channel, which means that the analyst believes that the falling trend line at the top is strong enough to not let the cryptocurrency break through.

These upward and downward moves will continue to take place until the cryptocurrency forms the right shoulder and breaks out of the channel. This is because the inverse H&S pattern is a bullish indicator. The target price for this Stellar price prediction lies at the $0.2936 mark. The analyst placed a sell signal at the target in this Stellar price prediction as they believe that the cryptocurrency’s bulls will exhaust once the target is met, and the coin will make a move towards the downside.