XLM price rose 45% between September 29 and October 7, setting up a swing high at $0.370. Interestingly, Stellar managed to close below the 62% Fibonacci retracement level at $0.365, which triggered the downswing. As the run-up failed to sustain, a 5% correction emerged, pushing Stellar to where it currently stands. XLM price will likely rise past the 50% Fibonacci retracement level at $0.343 before continuing its downtrend to $0.318. In dire cases, investors can expect XLM price to extend this pullback to retest the $0.30 support level. This downswing would constitute a 14% loss from its current position. While this downswing is a bearish outlook, it applies to the short-term outlook. Therefore, investors can expect XLM price to bounce off the $0.318 or $0.30 barriers and restart the uptrend.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

XLM price witnessed a decent run-up starting on September 28. This uptrend paused between October 2 and October 6 before extending higher. Now, Stellar bulls are nowhere to be found, leading to a pullback that threatens to undo those very gains. Stellar Development Foundation, a non-profit organization that supports the development of the Stellar blockchain, will help integrate its network into MoneyGram to enable cash funding and cryptocurrency payouts in local currencies for customers.

However, if Stellar manages to flip the 50% Fibonacci retracement level at $0.343 and then produce a higher high above the October 7 swing high at $0.370, it will create a higher high, invalidating the bearish outlook. Such a move could kick-start a new uptrend to $0.38 or a high time frame resistance level at $0.426.

STELLAR/US DOLLAR

Oct 10 2021