#ETHBreaks3700
Some technical factors behind the current price of token $XLM ๐ฅ๐ฅ๐ฅ๐ฅ
From a technical standpoint, the price recovery of XLM was supported by several elements of interest. The first was the breaking of previous bearish patterns, such as the descending triangle and the descending wedge, which marked a floor at levels close to $0.24 and $0.32.
Another factor was the formation of an impulse structure based on Elliott Wave theory, with the current phase identified as the possible wave (v) upwards, whose Fibonacci extension target is between $0.50 and $0.55. This is complemented by increasing volume in key support areas ($0.39 and $0.40), which reinforces the strength of the bullish movement.
But beyond this, the $0.50 barrier presents itself as a formidable element, both from a technical and psychological perspective. It is a round number that acts as a key reference in the perception of retail and institutional investors.
For the XLM token to generate confidence at new local peaks, it must first consolidate above that price. As long as it does not achieve this, the probabilities of exhaustion and withdrawal by investors increase. Recent data shows that, once the $0.50 threshold was surpassed, investors exhibited indecision, leading to a rapid correction.