Since October 16, Stellar has been in a correction period. It failed to break an overhead barrier on October 16. XLM has been stuck below the $0.43 supply zone for 24 days. Stellar has dropped off the support level and is now trending higher. This development can trigger a price move higher for XLM. It can also send the market higher as it will send the bulls into action. This move will trigger the Stellar price to retest its three crucial hurdles: $0.50, $0.59, and $0.71.
The key level that the market needs to meet to confirm an ideal bullish Ichimoku breakout is the level at which the Tenkan-Sen and Kijun-Sen meet. The implied profit target zones are established based on the Fibonacci expansions. After a confirmed bullish closing, the first target zone would be the 100% expansion at $0.97. The long-term bullish view for XLM may take some time to develop. Even in an environment where altcoins are experiencing significant upside momentum, it would still end up being difficult to justify entering. If the XLM price manages to breach the $0.39 resistance area, it will then reverse and target the $0.36 support floor. However, a breakdown below this level would invalidate the bullish thesis of the coin.