- XLM price hits key resistance at $0.43; breaching this area may drive toward $0.46 and possibly beyond.
- XLM price has strong support at $0.40-$0.41, possible rebound in case of a hold.
- Volume will play a pivotal role in establishing XLM price orientation breakout or breakdown.
The XLM price is approaching a key level and the resistance line at $0.43 is very hard. Traders are monitoring it to see whether the price will eventually overcome this obstacle after multiple attempts. Should XLM break above $0.43, it will likely be the beginning of a new bullish-rising trend, and there is a probability of additional gains.
XLM Price Eyes $0.43 Resistance as Bulls Target Higher Levels
XLM price has been testing the resistance level of $0.43, but it remains to be breached. This significant level has acted as a great hindrance and the way the price responds to this level of resistance may present the next significant move in XLM. Analyst ali_charts suggested a breakout may create positive optimism in the market, possibly initiating a bull phase and allowing a move to $0.46 or above.
Source: Ali Charts/X
A breakout must have good volume to be sustainable. A volume increase would signal greater buying interest, thus proving the popularity of a move beyond resistance. As long as the move to $0.43 is accompanied by high volume, it might establish the next upward swing above higher targets of $0.46, $.47 or even $0.50.
The breakout may also not have enough strength without volume, and XLM price may not sustain above resistance as it may drift back to break below $0.43 and retest the next support at $0.41.
XLM price is also testing a major support level at around $0.40-$0.41, which has been resilient in recent price action, with buyers coming in every time the price goes toward this area.
According to analyst Joe_Swanson057, a drop in the XLM price to under the price of $0.40 may be an indicator of more bearish exposure, possibly of either $0.38 or $0.35 in price. Nevertheless, provided that XLM price remains above the 0.40 level, it may rebound and retest the new highs.
Source: Joe_Swanson057/X
However, the near-term resistance level to monitor is $0.43, and the next possible area of resistance above it would be to rise towards $0.45-$0.46. A breakout above the crucial resistance of $0.46 would confirm a bullish outlook.
Nevertheless, the inability to surpass the $0.43 mark and falling below the $0.40 mark would probably indicate a further development of the bearish trend. Volume should also be paid attention to by the traders in order to verify whether a breakout or a breakdown is occurring since a strong volume will be supportive in the direction moved by the price.
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