Stellar’s Price Bounce Validates Key Area
Stellar Lumens (XLM) experienced a sharp price fall but managed to bounce back, resulting in a 25% increase. The bounce confirmed the importance of the $0.105 area, which will determine the future trend.
- The price broke out from a 616-day resistance line, indicating the completion of the previous correction and the start of a new movement
- XLM struggled initially to move above $0.105 but broke out in July, reaching a new yearly high of $0.195
- Last week, XLM crashed back to $0.105, creating a long lower wick and bouncing, which validated the area as support
- If the bounce continues, the next resistance will be at $0.23, while a breakdown can cause a 41% drop to yearly lows near $0.080
- The weekly RSI is currently undetermined, failing to confirm the trend’s direction
Undetermined Outlook for Stellar Lumens
On the daily timeframe, the price fell below a descending resistance line, but bounced back and validated the $0.110 area as support. However, XLM was rejected by the resistance line and the $0.130 resistance area. A breakout from the line is needed to confirm the bullish trend. The daily RSI also provides conflicting readings, increasing but below 50 and the resistance line.
Hot Take
The future trend of Stellar Lumens will depend on whether it breaks out from the resistance line or continues to face rejection. A breakout can lead to a 30% increase to the $0.160 resistance, while rejection may result in a 12% drop to $0.110.
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