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The price of Stellar token XLM The bank is looking at a bearish scenario, despite the impressive start to the year. Recently, XLM was launched, which many consider to be a beta XRPsaw its prices rise by more than 35% to settle at $0.46.
However, this local rally for the Stellar token may soon see a short-term downtrend. At least the Bollinger Bands indicator indicates such a possibility. The indicator, developed by famous trader John Bollinger, displays a 20-day moving average and two deviations from it - one up and one down. Together the three curves form a price range.
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For example, after the recent rise, XLM price It reached the top of the range at $0.46, which is exactly where the upper range extends. This usually acts as a range boundary and a local stop after strong moves.
If so, there will likely be at least a drop to the mean for XLM, which is now at $0.382, which is 15.45% lower than the current price.
Alternatively, a drop to the lower range should also be taken into account, as the previous price action of the Stellar token shows.
In this case, XLM could see its price drop to $0.31, which is 31.3% lower than today's price. The second scenario may not be short-term, and does not quite fit the logic of XLM's current price action, as such a decline would erase all the gains of the past few days.
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In fact, the upper range has been reached, and the potential for further growth of the Stellar token is currently less than the possibility of a correction.
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