- XLM price is bouncing off a demand zone that ranges from $0.460 to $0.477.
- The 100 and the 200 SMA at $0.469 and $0.521 present above Stellar will hinder its growth.
- A breakdown of $0.451 will signal the start of a new downtrend.
XLM price shows a consolidation in play after a swift bounce recently. Although less likely, the confluence of support would most likely push Stellar to the recent swing high.
XLM price eyes higher high
On the 4-hour chart, XLM price is currently trading at $0.486, just above the demand zone, extending from $0.460 to $0.477. Interestingly, this area also harbors a critical support barrier at $0.473 and the 50 SMA at $0.466.
Hence, a slow yet steady upswing seems likely for the remittance token.
Investors can expect a climb to the recent swing high at $0.565 if it can clear the 100 and the 200 Simple Moving Averages (SMA) at $0.469 and $0.521, respectively.
In such a case, XLM price could even retest the lower band of the supply zone that stretches from $0.588 to $0.611.
XLM/USDT 4-hour chart
On the flip side, if the short-term momentum fails to persist, leading to reentry and a breakdown of the demand zone would put the upswing narrative in question.
However, a solid 4-hour candlestick close below $0.451 would create a lower low, invalidating the bullish thesis and triggering a 12% downtrend to $0.415.