- XLM price is bouncing off the demand zone extending from $0.596 to $0.638 for the third time over the past week.
- If the overall market structure remains neutral or bullish, Stellar could surge 25% $0.831.
- A breakdown of $0.575 will invalidate the bullish outlook and trigger a downtrend.
XLM price is currently indecisive as it bounces off a crucial support area. If the buyers pile up their bid orders, the chances of Stellar surging to new yearly highs are promising.
XLM price faces a decisive moment
XLM price created a demand zone as it surged roughly 30% between May 5 and May 6. This zone helped the buyers recuperate and further propel the remittance token up by 10%. Since this point, XLM price has tested this level twice before shattering it on May 12 during the most recent market sell-off.
This move would establish an uptrend, with three higher highs and two higher lows and set the stage for further upswings.
XLM/USDT 4-hour chart
While the uptrend scenario seems likely, the demand zone detailed above has already been tested more than twice, so the likelihood of buyers coming to the rescue is very low. Therefore, the bulls’ inability that leads to a decisive 4-hour candlestick close below $0.575 will invalidate the optimistic narrative detailed above.
In that case, investors can expect XLM price to slide 7% to tag the support level at $0.533