XLM price showed a slowdown in bullish momentum after surging approximately 100% since February 1. Now, Stellar awaits for volatility to resume its uptrend.
XLM price hit a pause after reaching $0.60 on February 13. Since then, Stellar entered a consolidation period. It formed a series of lower highs while the horizontal support at $0.46 has rejected any downward pressure.
By drawing a trendline around the swing highs and another at the underlying support, a descending triangle seems to form.
As XLM price moves closer to the triangle’s apex, the odds for a bullish impulse increase. If Stellar can slice through the $0.51 resistance, then the descending triangle forecasts a 25% upswing to $0.60.
The target is determined by measuring the distance between the pivot high at $0.60 and the horizontal support at $0.46 and adding it to the breakout point.
It is worth mentioning that there are instances where descending triangles formed as reversal patterns during uptrends. Therefore, investors must pay close attention to the $0.46 support level.
If XLM price manages to slice through this demand barrier, then a 25% pullback to $0.34 can be expected.
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