Stellar (XLM) Price Analysis: Bullish Outlook for a Potential Breakout
The current price of Stellar (XLM) is trading within a long-term range, having decreased since its yearly high in July. However, the daily timeframe readings indicate that a breakout from the current pattern is expected, potentially leading to a new yearly high.
Main Breakdowns:
- The weekly timeframe analysis shows that XLM broke out from a long-term descending resistance line in January. The price moved above the $0.105 resistance and reached a new yearly high of $0.195 in June.
- The main resistance area for XLM is at $0.23, while the closest long-term horizontal support is at $0.105.
- The weekly RSI, a momentum indicator, is currently giving an undetermined reading. Readings above 50 and an upward trend suggest a bullish advantage, while readings below 50 indicate the opposite.
- The daily timeframe analysis using Elliot Wave Theory predicts a bullish outlook. XLM is currently in the fourth wave of a five-wave increase, with a triangle pattern indicating a potential breakout. If confirmed, XLM could increase by 60% to the next resistance at $0.23.
- However, if the price breaks down, it could revisit the $0.130 area. A decrease below the wave one high at $0.118 would invalidate the bullish count, potentially leading to a 35% drop to $0.09.
Hot Take:
Considering the current analysis, the most likely XLM price prediction is bullish. A potential 60% increase to the next resistance at $0.23 is expected. However, a decrease below $0.118 would invalidate this bullish outlook and could lead to a 35% drop to $0.09.
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