Stellar (XLM) Price Prediction For April: Can It Rise by 58% To Hit the Target of $0.20?

Stellar has seen a great week of bullish price action after the market rose by a total of 17%, bringing the current trading price up to around $0.1273. The cryptocurrency has now seen a further price surge of 46% over the past 30 days.

The recent price increase has now allowed XLM/USD to climb above the March 2019 high at $0.12. The price surge has also caused Stellar to break above the 100-day moving average and remain above for a total of 4 days so far. This is the first time that XLM has been able to break above the 100-day moving average since November 2018.

Stellar has now also created a fresh 2019 high at $0.1378 over the past couple of days. The 56-month-old cryptocurrency project is now ranked in the 8th position, according to market-cap value, as it holds a $2.41 billion market cap.

In this article, we will take a look at the potential for XLM to rise by 58% in April 2019, and hit the $0.20 level.

Let us take a look at the XLM/USD market and highlight some areas of resistance for the bulls before being able to reach the $0.2 target.

XLM Price Analysis

XLM/USD – SHORT TERM – DAILY CHART

xlm_usd_apr5
Image source: https://www.tradingview.com/x/Ld83juFp/

What Has Been Going On?

Taking a look at the daily XLM/USD chart above, we can see that Stellar has rebounded from the 14-month low at $0.073 during February 2019 and has continued to rise ever since. During March 2019, the market attempted to break above the 100-day moving average, but failed to hold above this level for more than 2 days.

As April 2019 began trading, the market was able to break above the March 2019 high at $0.12. This is largely due to the successful run that Bitcoin has been experiencing since the start of the month.

XLM/USD is now trading at resistance provided by a short-term .886 Fibonacci Retracement level (drawn in red) located at $0.1281. This bearish Fibonacci Retracement level is measured from the final lower high in December 2018 to the February 2019 price low.

What Is the Short-Term Trend For XLM/USD?

The recent break above the $0.12 level has now allowed the short-term bullish trend to continue for XLM/USD. For the bullish trend to be invalidated we would need to see price action fall beneath the $0.10 level.

Where Is the Resistance on the Way Up to $0.5?

If the bulls can continue to break above the current resistance at $0.1281, we can expect immediate higher resistance to be located at $0.1348, $0.1450 and $0.15. Above $0.15, resistance is then expected at a 12-month-old descending trend line.

If the bullish pressure can cause XLM/USD to break above this trend line, further resistance is then expected at a long-term bearish .382 Fibonacci Retracement level (drawn in green) priced at $0.1551. This longer-termed bearish Fibonacci Retracement level is measured from the November 2018 high to the February 2019 low. This area of resistance is further bolstered by a short-term 1.272 Fibonacci Extension level at the same price.

Above $0.16, more resistance is then located at $0.17, and then at the long-term bearish .5 Fibonacci Retracement level (drawn in green) at $0.1806.

Before being able to reach the $0.20 target, the bulls will need to break above resistance at the $0.1880 level, which is the September 2018 price low.

What Are the Technical Indicators Showing?

Price action has broken above the 100-day moving average with the 7-day EMA and 21-day EMA following suite. This is an incredibly strong bullish signal.

The RSI is also trading within bullish territory above the 50 level, which indicates that the buyers are in control of the market momentum at this moment in time.

Conclusion

The rise toward $0.20 will not be an easy target for Stellar to achieve. However, if buyers can break above the initial resistance at $0.1281 and the subsequent strong resistance at $0.1515, the market should be clear to continue to travel further higher.

To achieve the $0.20 target, the bullish momentum and trading volume will need to remain consistently high.

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