XLM price rose 160% over the past few weeks to hit an all-time high of $ 0.60. However, after reaching the record high, Stellar entered a phase of consolidation.
XLM could rise substantially or drop to an immediate support level, depending on the bullish pennant pattern plotted on the six-hour chart.
XLM price is trending upwards due to the formation of the bullish pennant pattern. The 160% increase between January 28 and February 13 formed the “flagpole”, while consolidation since then resulted in a “flag”. The formation can be seen more clearly in the graphic below.
The model in question predicts a 60% increase to $ 0.82, determined by measuring the length of the flagpole and adding $ 0.51 to the break. Therefore, a six-hour candlestick that closes above $ 0.51 is essential for the pattern to work as expected.
On the other hand, the Stellar price falling below the six-hour 50 moving average (MA) at $ 0.49 would be the first indication of increased selling pressure. Moreover, a six-hour candlestick near $ 0.46 will invalidate the bullish outlook and mark the start of a downtrend. This resultant selling pressure could trigger a 10% correction towards $ 0.41.