Stellar’s Price Bounce and Resistance Levels
The price of Stellar (XLM) has seen an increase since a significant bounce on August 17, which created a long lower wick. Currently, the price is trading at a confluence of resistance levels, and whether it breaks out or gets rejected will determine the future trend.
Key Points:
- The XLM price broke out from a 616-day resistance line at the beginning of the year, indicating a complete previous movement and a potential long-term bullish trend reversal.
- XLM struggled to move above the $0.105 horizontal area but eventually broke out in July, reaching a new yearly high of $0.195.
- However, XLM has fallen since its yearly high and created a long upper wick, signifying selling pressure.
- The price then reached a low of $0.105, validating the $0.105 area as support and creating a long lower wick, indicating buying pressure.
- If the bounce continues, the XLM price could increase by 86% and reach the $0.23 area again. If the rally loses momentum, the price may fall by 43% to the $0.105 area.
Uncertain Perspective for XLM’s Price Movement
Looking at the daily timeframe analysis, the perspective for XLM’s price movement appears uncertain. The price declined below a descending resistance line and reached a low of $0.105. Although there was a subsequent recovery, XLM faced resistance from the line and the horizontal resistance area at $0.130.
Key Points:
- A breakout from the descending resistance line is crucial to confirm a bullish trend.
- The daily RSI is on the rise but remains below 50, indicating mixed signals and an undetermined trend.
- The future of XLM’s price depends on whether it can breach the resistance line or if the rejection continues. A successful breakout could lead to a 27% upswing toward the $0.160 resistance, while a rejection may result in a 14% decline to $0.110.
Hot Take
The future of Stellar’s price remains uncertain as it faces resistance levels and a potential breakout from a descending resistance line. Traders should closely monitor whether XLM can overcome these obstacles to determine the future trend. A successful breakout could lead to significant gains, while a rejection may result in further decline.
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