Stellar (XLM) Price Analysis: Will the Decrease End at Long-Term Support?
The price of Stellar (XLM) has been on a downward trend since reaching a new yearly high in July. The decrease accelerated after a breakdown of a symmetrical triangle. However, the price is approaching a long-term horizontal support level at $0.105, which could potentially put an end to the decrease.
Main Breakdowns:
- XLM broke through a long-standing resistance line in January, suggesting a shift in trend direction.
- After facing difficulty surpassing the $0.105 resistance level, XLM established a higher low in June and gained upward momentum.
- Despite reaching a new yearly peak in July, the price has turned downwards with consecutive bearish weekly candlesticks.
- A potential fourth bearish candlestick could lead to a further decline towards the $0.105 support level.
- If a bounce occurs at the support level, the price could increase by 105% and reach the $0.230 resistance area.
Assessing the weekly Relative Strength Index (RSI) does not provide a clear trend direction. A declining RSI remains above the 50 mark, indicating conflicting signals.
The daily timeframe analysis suggests a mostly bearish outlook, mainly due to the breakdown of a symmetrical triangle and a decrease in the RSI below 50. These signs support a bearish trend and could potentially lead to a 35% decrease.
Despite the bearish prediction, a strong bounce at the current support area could lead to a 15% increase and validate the $0.130 resistance area.
Hot Take:
The Stellar (XLM) price analysis indicates a potential end to the decrease at a long-term support level. However, conflicting signals from the RSI and the breakdown of a symmetrical triangle suggest a bearish trend. Traders should closely monitor the price action to identify any potential bounce or further decline.
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