The Stellar (XLM) Price Dropped, Testing Critical Support at $0.11
The Stellar (XLM) price has experienced a decline since November 13 and is currently hovering around a crucial horizontal support level at $0.11. Whether XLM will rebound or undergo a breakdown will be a key factor in determining its future trajectory.
Stellar Fails to Sustain Increase
According to technical analysis from the weekly timeframe, XLM had been following an upward trajectory along an ascending support line since the beginning of the year. This trend resulted in XLM reaching a new yearly high of $0.196 in July. However, the price plummeted shortly after, failing to recover in that range and instead validating it as resistance, as indicated by the creation of a long upper wick last week.
The weekly timeframe Relative Strength Index (RSI), which serves as a momentum indicator, currently presents an undetermined reading. This means that its trend cannot be conclusively determined based on the RSI alone.
What Do the Analysts Say?
Various cryptocurrency traders and analysts are offering positive predictions for the XLM price. Cryptollica tweeted about a long-term fractal that resulted in significant upward movements in previous cycles. Similarly, Mister Moon is bullish due to a short-term pattern he observed, specifically an inverse head and shoulders pattern that could lead to significant upward movement.
Additionally, the Stellar team announced that Alchemy Pay has joined the Stellar ecosystem to provide ramp services to developers and dApps, offering a cost-effective fiat-to-crypto transition for users
XLM Price Prediction: What’s Next?
Similar to the weekly timeframe, the daily timeframe for XLM does not offer a clear direction for the future trend. The price recently broke out from a descending resistance trend line but was subsequently rejected at a certain resistance level, causing the price to approach the $0.11 horizontal support area.
Now, the reaction to this $0.11 area will be crucial for predicting the future XLM price. A bounce could lead to a 40% increase, while a breakdown might catalyze a 35% drop to the next support at $0.078.
Hot Take: Evaluating Stellar’s Future
The future of Stellar’s price largely depends on its reaction to the critical $0.11 support area. Key indicators like the RSI and patterns observed by analysts indicate the potential for both upward and downward movements. Additionally, new developments, such as Alchemy Pay’s integration with the Stellar ecosystem, may influence market sentiment and thus the price of XLM. Keeping an eye on these factors will be crucial in evaluating Stellar’s future performance.
By
By
By
By