Stellar (XLM) Price Analysis: Short-Term Breakout Potential
The price of Stellar (XLM) has been on a decline since reaching its highest point of the year in July. However, there is potential for a breakout as it trades within a short-term pattern. Despite the drop, the weekly trend remains positive, and a breakout from the short-term symmetrical triangle could confirm a bullish trend.
Key Points:
- XLM broke out from a descending resistance line in January, establishing a higher low and confirming it as a support level.
- After surpassing a horizontal resistance region, XLM faced selling pressure and halted its upward trajectory.
- The Relative Strength Index (RSI) provides a mixed reading, signaling an uncertain trend.
- The Elliott Wave theory suggests that XLM has potentially reached a local low and is in the process of confirming its support line within a triangle pattern.
- If XLM breaks out from the triangle pattern, it could see a 60% gain and reach a long-term resistance level at $0.23.
Hot Take: While there is potential for a breakout and a positive price projection for XLM, a drop below the peak of wave one at $0.12 would indicate a shift toward a bearish trend. It is important for XLM to close above the resistance line of the triangle to validate the positive scenario.
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