Stellar continues to regain lost ground despite market uncertainty.
Key points:
- Stellar continues to consolidate within the descending parallel channel.
- The latest rally looks promising as XLM tries to break through a crucial wall of resistance.
- Turning the $ 0.32 level into support could push it up nearly 40%.
Stellar’s value has risen by almost 48% in the last 24 hours. Numerous technical indicators suggest that XLM could be pegged to further rally if it manages to break the critical resistance barrier.
Stellar’s price action was held back by a descending parallel channel last week.
Every time the XLM rises to the upper edge of this technical formation, it deviates and returns to the lower edge of the pattern. From this point on, it tends to rebound, which is consistent with the characteristics of the parallel channel.
After retesting the channel’s lower trendline on January 11, the Stellar price bounced to the upper trendline and has hovered around this resistance level since then.
Stellar is set for a bullish breakout
The Tom Demark Sequential Index (TD) suggests that the ninth largest cryptocurrency by market cap is poised to break out of consolidation and move on.
This technical index provided a buy signal of nine red candles on the 12-hour XLM chart. A bullish formation predicts one to four 12-hour upward candlesticks or the start of a new upward countdown.
The surge in buying pressure behind this cryptocurrency could help confirm the bullish outlook.
After breaking the $ 0.32 upper resistance level, Stellar could rally more than 40% to reach the $ 0.40 target.
Given the high level of volatility in the cryptocurrency market, a bearish outlook cannot be ruled out.
If XLM fails to break the $ 0.32 resistance barrier, further pullback could occur. In such circumstances, the fall may continue to the lower border of the channel at $ 0.20.
