Stellars Price Decreases Towards $0.105 Support Area

Stellar (XLM) Price Analysis: Gradual Decrease Towards Support Area

The price of Stellar (XLM) has been gradually decreasing since reaching its yearly high in July and is now approaching the main support area at $0.105. The daily timeframe shows a breakdown from a continuation pattern, indicating a decrease in price.

Main Breakdowns:

XLM broke out from a 616-day resistance line in January, signaling a change in trend direction.
After struggling to move above the $0.105 resistance, XLM created a higher low in June and increased its rate of increase.
XLM reached a new yearly high of $0.195 in July but has been moving downward since then.
The fourth consecutive bearish weekly candlestick could accelerate the drop to the $0.105 support area.
The main resistance area is at $0.230, 70% above the current price, while the support area is at $0.105, 22% below it.

The weekly RSI, a momentum gauge used by traders, provides inconclusive results. Despite the declining RSI, it remains above 50, making it difficult to determine the direction of the trend.

XLM Price Prediction: Potential Retracement

Looking at the daily timeframe, XLM is expected to continue falling. It recently broke down from a symmetrical triangle pattern, which typically leads to a breakout. However, XLM fell instead. The daily RSI also supports the breakdown.

If the XLM price breaks down below $0.130, it could drop to the next support at $0.110, a 20% decrease from the current price. This aligns with the long-term support at $0.105.

However, a breakout from the triangle’s resistance line would indicate a bullish short-term trend and could lead to a 70% increase to the $0.230 resistance area.

Hot Take

The price of Stellar (XLM) has been on a downward trend since its yearly high. Despite some conflicting indicators, the current analysis suggests that XLM will continue to decrease, potentially reaching the $0.105 support area. However, a breakout from the triangle pattern could change the short-term outlook to bullish. Crypto readers should closely monitor these price levels for potential trading opportunities.