XLM registered a historical price fall of more than 56.50% on May 19. While investors continue shivering in fear, Stellar price has stabilized and seems primed to rebound.
Stellar price action seems to be contained in ascending parallel channel support since the beginning of the year.
Each time XLM price has dropped to the channel’s lower boundary since then, it rebounds to the middle or upper edge. From this point, it tends to retrace to the lower support level, which is consistent with the characteristics of a channel.
The recent 56.50% that Stellar XLM price experienced could be considered an outlier as long as it remains trading above the price of $0.48. If Stellar XLM manages to keep this area as support, it might have the strength to price rebound toward the channel’s middle or upper boundary.
These areas of resistance level sit at $0.66 and $0.94, respectively.
Failing to hold above the channel’s lower edge at a price of $0.48 would likely invalidate the optimistic outlook. If this were to happen, Stellar XLM price might drop again to revisit the recent low of $0.28.
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