- XLM price witnessed a 37% upswing that has pushed it beyond the upper range at $0.609.
- Stellar is likely to consolidate around the demand zone extending from $0.595 to $0.631.
- Successful injection of buying pressure could propel the remittance token by 30% to $0.81.
XLM price broke out of a range-bound consolidation and now sits comfortably above it. The immediate support barrier will help Stellar stay afloat before the buyers decide to step in.
XLM price looks to consolidate
On the 6-hour chart, XLM price has risen above its local range at $0.609 and formed a demand zone that extends from $0.595 to $0.631. The Momentum Reversal Indicator (MRI) has flashed a pre-emptive top in the form of a yellow down arrow. This setup forecasts that if the uptrend continues, a reversal could be incoming.
Therefore, a consolidation around the demand barrier mentioned above is the most optimistic scenario. The sideways movement will allow buyers to recuperate, allowing a build-up of bullish momentum, which might eventually lead to a massive spike in XLM price to $0.817.
The local top at $0.695 and the 161.8% Fibonacci retracement level at $0.737 will be critical. Hence, investors need to keep a close eye on these barriers.
XLM/USDT 6-hour chart
The upswing narrative hinges on the fact that the demand zone holds the collapsing XLM price, but a breakdown could lead to a 6% correction to $0.562. However, a solid 6-hour candlestick close below this level will invalidate the bullish outlook at kickstart a bearish one.
Under these conditions, Stellar could retrace to the 50% Fibonacci retracement level at $0.506.