XLM coin price busted the neckline of a head-and-shoulders top pattern level yesterday and quickly plunged below the 100-day simple moving average (SMA) before gaining XLM price traction and propelling higher.

The last three corrections have averaged around 50%, and two of the three were short, lasting four and nine days, respectively. as the Stellar XLM head-and-shoulders top is made, it forecasts a loss of just over 50% from the April 13 high.

XLM price trying to shake the grip of bear

A decline of the magnitude mentioned above would drive the daily price RSI below 30, announcing a momentum low for the decline and therefore the technical basis for a new, long-term XLM rally. Without it, Stellar will be challenged to complete recovery to new highs.

In the path of the head-and-shoulders measured move target of $0.304 is that the 100-day SMA at $0.417, the overnight low at $0.390, and the rising trendline pattern from the February 22 low at $0.372. The measured move target also includes an undercut of the February low at $0.314.

To reiterate, at the measured move target, Stellar XLM will be down over 30% from the current price, 34% from the neckline break, and 55% from the April 13 high. Moreover, if the February low is shattered, it'll break the series of upper lows for price corrections and thrust bullish Stellar XLM speculators into a long waiting game.

If the Stellar XLM rebound firms, the 100 12-hour simple moving average (SMA) at $0.455 will be the first line of resistance level, closely followed by the neckline at a price of $0.463. A daily close above the neckline would raise the odds of a test of the 50 12-hour SMA at $0.513, but the meeting of Fibonacci support levels at $0.545 will prove to be a big challenge.

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