The Stellar Lumens price is in a tight range as investors ponder the currency’s next moves. The XLM price has dropped by more than 2% in the past 7 days and by 1.50% in the past 24 hours. This has brought its market cap to more than $9.4 billion. It has been overtaken by the likes of Uniswap and Chainlink in the size of the biggest coins.
In my last Stellar Lumens price prediction, I wrote that the currency was bracing for a major breakout. I based that argument on the triangle pattern that was forming on the four-hour chart.
Unfortunately, that prediction did not happen since the price continued to consolidate. Indeed, the triangle pattern has continued, as you can see on the chart below.
Due to this consolidation, the price is at the same level as the 25-period and 50-period exponential moving averages while the Average True Range (ATR) has continued to drop. The ATR is an important indicator used to measure volatility.
Therefore, in my view, the original thesis of the XLM being about to break-out is still valid. Since this is a symmetrical triangle pattern, it is still unclear the direction which it will break-out.
Therefore, the key levels to watch will be $0.45 and $0.40. If it moves upwards, the key resistance to watch will be $0.45. Any moves above this level will signal that bulls have prevailed and that the price will continue rallying. However, a drop below $0.400 will be a vindication for the bears.
