It has been a rough day for Stellar (XLM), as the previously strong cryptocurrency is now facing heightened selling pressure.
Its ongoing slide lower has come about due to the weakness seen by both Bitcoin and most other major digital assets.
At the moment, the benchmark crypto is struggling to hold above $12,000, with its dip below this level striking a blow to its technical strength.
This has caused investors to grow increasingly concerned with how altcoins might react to a strong BTC selloff.
Despite this, analysts still believe that Stellar could be well-positioned to see further near-term upside, with one trader explaining that he expects it to see a 60%+ pump in the coming days and weeks against its Bitcoin trading pair.
There are a few technical factors that seem to support this notion, as XLM has been able to hold above multiple crucial technical levels.
Stellar Shows Signs of Strength as It Holds Above Key Technical Levels
At the time of writing, Stellar is trading down over 4% at its current price of $0.109. This marks a notable decline from its recent highs of nearly $0.12 that were set yesterday when it surged alongside Bitcoin and the rest of the market.
The crypto token has been flashing signs of similar weakness while looking towards its Bitcoin trading pair.
That being said, analysts are now widely noting that it may be well-positioned to see significant upside, with multiple factors pointing to underlying strength against BTC despite its ongoing price decline.
One trader explained that Stellar is holding above its 100-day and 200-day moving averages, also being able to form a higher high and a higher low.
He is targeting a movement towards 1400 sats, up from its current price of 900 sats.
“And we’re holding the 100-Day and 200-Day MA after a retest. HL made, HH made as well. Looking for a new HH around 1400 sats.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Analyst: XLM Could Soon Pump 60%+
Another analyst echoed this sentiment, explaining that he is eyeing a 60% move higher for Stellar against its BTC trading pair.
“XLM – This could pump +60% fairly easily tbh. One could enter here at 903 sats or wait for the ‘safer’ entry on a break above 966 and miss the first 8.5% of the move. Areas of interest: 966 sats, 1157 sats, and 1422 sats. Can buy or compound positions at the above areas.”
Image Courtesy of UB. Chart via TradingView.
For this potential upswing to come to fruition, Bitcoin and the rest of the market must remain somewhat stable.
Featured image from Unsplash. Charts from TradingView.