The Stellar (XLM) Price Breaks Out from Descending Resistance Line, but Faces Key Level Test
The recent price action of Stellar (XLM) indicates a bullish trend, as the cryptocurrency broke out from a long-term descending resistance line and reclaimed the $0.105 support area. This breakout signals a potential move towards the $0.13 horizontal level. The Relative Strength Index (RSI) also supports this bullish outlook.
Stellar Price Bounces at Long-Term Support
An analysis of the weekly timeframe reveals a mostly bullish outlook for XLM. The breakout from the descending resistance line in January and the subsequent reclaim of the $0.105 support area are significant factors contributing to this outlook. Although XLM experienced a drop after reaching a high of $0.195 in July, it validated the $0.105 area and bounced back. Currently, XLM trades 20% above the support area and 80% below the next resistance at $0.230.
Can XLM Price Sustain Its Breakout?
Looking at the daily timeframe, XLM also shows a bullish outlook. However, the cryptocurrency needs to reclaim and validate the $0.13 horizontal level as support to confirm the bullish trend. If successful, a 26% increase to the next resistance at $0.160 can be expected. The RSI has already turned bullish, breaking out from its descending resistance line and moving above 50. However, if the price falls below the $0.13 area, a drop to the $0.105 support area may occur, resulting in a 15% decrease.
Hot Take: Stellar (XLM) Poised for Bullish Move, But Faces Key Test
The recent breakout of Stellar (XLM) from a descending resistance line and its ability to reclaim the $0.105 support area indicate a bullish trend. However, the cryptocurrency now faces a critical test at the $0.13 horizontal level. If it can successfully reclaim and validate this level as support, a significant increase to the next resistance at $0.160 may follow. The RSI also supports the bullish outlook. However, if the price fails to hold above $0.13, a drop to the $0.105 support area may occur. Traders and investors should closely monitor the price action around these key levels to determine the future trend of XLM.
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