The Stellar Price Continues to Decline Towards Support
The price of Stellar (XLM) has been decreasing since reaching its yearly high in July and is now approaching a significant horizontal support level at $0.105. Although the price briefly broke out from a short-term descending resistance line, it was unable to sustain its upward movement.
Technical Analysis Indicates a Downward Trend
When analyzing the weekly time frame, it is evident that the price of Stellar lumens has fallen sharply since reaching $0.195 in July 2023. This decline resulted in a low of $0.105 in August, which confirmed the $0.105 support level. Interestingly, this created a long lower wick, indicating buying pressure.
Despite a subsequent bounce, the price has failed to maintain its increase and is currently trading just 10% above the $0.105 support level.
Bullish RSI Reading Offers Hope
Although there has been a drop in price, the Relative Strength Index (RSI) reading remains bullish. The RSI is a momentum indicator used by traders to assess whether a market is overbought or oversold and to make decisions regarding asset accumulation or sale.
The RSI moved above 50 in June, indicating an upward trend and providing support for the current price level.
Prediction for XLM Price Uncertain After Failed Breakout
Analysis of the daily timeframe provides mixed readings due to both price action and RSI indicators. The XLM price initially broke out from a descending resistance line on September 4, which was expected to lead to a significant increase. However, the price failed to reclaim the $0.130 horizontal area and instead validated it as resistance.
The failure to sustain the breakout is considered bearish and raises doubts about its validity. The RSI reading is also inconclusive, as it hovers around the 50 line.
Conclusion: XLM Price Prediction Remains Uncertain
Given the current circumstances, it is difficult to predict the future movement of the XLM price. A rise to the $0.130 resistance area would represent a 10% increase, while a drop to the $0.110 area would result in a 9% decrease.
Hot Take: Stellar (XLM) Price Faces Uncertainty Amidst Failed Breakout
The price of Stellar (XLM) has been on a downward trend since reaching its yearly high in July. Despite an initial breakout, the price failed to sustain its upward movement, casting doubt on its future direction. The RSI reading offers some hope for bullish momentum, but overall, the XLM price prediction remains uncertain. Traders should closely monitor key support and resistance levels for potential price movements in either direction.
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