- The XLM price closed yesterday with the biggest daily gain since January 6th.
- The star group on Reddit speculates that a CBDC could be set up on the blockchain.
- Fibonacci levels collide creating significant resistance in the short term.
The XLM price closed the week beginning March 22nd on a hammer pattern and set the stage for a price hike. Stellar was up nearly 8% for the following week and up 25% this week at the time of writing. Today momentum has stalled just above the convergence of the 3.618 Fibonacci expansion of the 2019-2020 bear market at $ 0.546 and the retracement level of 0.786 from the February crash at $ 0.545.
XLM price at a turning point
For the whole of March, Stellar traded on a parallel channel with low volume and modest daily price movements. It was a classic case of price compression that will result in price expansion and, in this case, upward movement.
Stellar is at a technical turning point. It may take several days for the remittance token to recover from the price resistance defined by the retracement level of 0.786, the extension level of 3.618 and the all-time high of $ 0.608.
With the resistance over, look at the 2019-2020 bear market’s 4.618 extension level at $ 0.690, closely followed by the 1.382 extension level of the February crash at $ 0.720, a 34% gain from yesterday’s close. An optimistic profit target is the 1.618 extension level of the February crash at $ 0.790.
XLM / USD daily chart
No market forecast is a 100% probability. Thus, Stellar can reverse itself from the main resistance. The critical support is at the intersection of the channel highs with the January high at $ 0.440.
A second layer of support sits at the intersection of the channel lows and the 100-day simple moving average (SMA) around $ 0.360. A collapse below the channel will bring the confluence of February lows to $ 0.314 and the 2020-2021 bull retracement level from 0.50% to $ 0.317 in the crosshairs.