2023-8-18 12:00 |
Stellar’s (XLM) price has fallen since reaching a new yearly high in July. The decrease accelerated after a breakdown of a symmetrical triangle.
The Stellar price is approaching a long-term horizontal support level at $0.105, which could end the decrease.
Stellar Price Decrease Continues for the Fourth Week in a RowThe XLM price analysis on a weekly time frame reveals a bullish development. In January, XLM broke through a resistance line that had been in place for 616 days. This type of breakout from a long-standing structure suggests a shift from the previous trend to a new one in the opposite direction.
Initially, XLM faced difficulty surpassing the $0.105 resistance level. However, it managed to establish a higher low in June and subsequently accelerated its upward momentum.
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After successfully overcoming the $0.105 resistance, XLM reached a new yearly peak of $0.195 in July. Despite this, its trajectory has since turned downwards, evident from three consecutive bearish weekly candlesticks.
Currently, XLM is in the process of forming a fourth bearish candlestick, potentially leading to a further decline towards the $0.105 level, which is now anticipated to act as a support.
If a bounce at this level occurs, the XLM price can increase by 105% and reach the $0.230 resistance area. On the other hand, a breakdown from the $0.105 area could lead to a 35% decrease toward the yearly lows near $0.070.
XLM/USD Weekly Chart. Source: TradingViewAssessing the weekly Relative Strength Index (RSI) presents an inconclusive outcome. Traders utilize the RSI as an indicator of momentum to evaluate whether a market is excessively bought or sold, aiding in their decisions to buy or sell an asset.
An RSI reading above 50 and an ascending pattern indicate a continuing bullish sentiment. Conversely, readings below 50 suggest a bearish sentiment.
Despite a declining RSI, the indicator remains above the 50 mark. These conflicting signals do not clearly confirm the prevailing trend direction.
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XLM Price Prediction: Triangle Breakdown Catalyzes DropThe daily timeframe analysis provides a mostly bearish outlook. The main reason for this is the breakdown of a symmetrical triangle that had been in place since July 14. XLM broke down from the triangle on August 13 and then fell below the minor $0.13 horizontal support area.
The daily RSI suggests that the price will continue decreasing. The indicator fell below 50 (red icon) and is decreasing. These are both considered signs of a bearish trend. They also provide legitimacy to the breakdown.
As outlined prior, a breakdown can lead to another 35% decrease.
XLM/USDT Daily Chart. Source: TradingViewDespite this bearish XLM price prediction, a strong bounce at the current support area can lead to a 15% increase that can validate the $0.130 horizontal resistance area.
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The post Stellar (XLM) Price Battle: Holding Yearly Support or Falling? appeared first on BeInCrypto.
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