2023-1-17 16:00 |
The Stellar Lumens (XLM) price is approaching the end of a bullish pattern that has been in place for nearly 18 months. A positive resolution could kick-start a bullish reversal.
Stellar is a decentralized network created by the Stellar Development Foundation. On Jan. 13, TASCOMBANK, a central Ukrainian commercial bank, announced that it had successfully conducted a pilot using the Stellar network. In turn, it has recommended the adoption of blockchain technology in order to transform the payments network in Ukraine.
Stellar Reclaims ResistanceThe Stellar price has decreased inside a descending wedge pattern since May 2021, when it reached a high of $0.798. The descending wedge is a bullish pattern. So, it is expected to lead to breakouts most of the time.
The bullish signs do not stop at the descending wedge. While the Stellar price broke down from the $0.084 support area at the beginning of Dec., it bounced at the support line of the wedge (green icon) and reclaimed it. Such a reclaim is considered a bullish development since it renders the previous breakdown illegitimate. Now, the XLM price is trading very close to the resistance line.
If a breakout occurs, the next resistance would be at $0.13. On the other hand, a fall below the $0.084 area could lead to a XLM price drop toward $0.062.
While the weekly RSI is increasing, it has not generated any bullish divergence or moved above 50. Therefore, the bullish pattern and reclaim are not accompanied by bullish indicator readings.
XLM/USDT Weekly Chart. Source: TradingView Short-Term Stellar Price BreakoutThe technical analysis from the six-hour time frame shows that the Stellar Lumens price broke out from a descending resistance line on Jan. 10 (dashed). It accelerated its rate of increase afterward, reaching a high of $0.090 on Jan. 14. The high validated the $0.09 resistance area.
However, the six-hour RSI has generated bearish divergence (green line) over the past 24 hours, indicating that a downward movement could follow. If one occurs, the XLM price could fall to an ascending support line at $0.084.
On the other hand, the digital currency could accelerate its rate of increase if it breaks out above $0.090. In turn, this would likely cause a breakout from the long-term descending wedge.
XLM/USDT Six-Hour Chart. Source: TradingViewTo conclude, the most likely Stellar price forecast is a short-term retracement followed by a breakout from the long-term descending wedge. A breakout from the wedge would confirm the long-term bullish trend. On the other hand, a breakdown from the short-term ascending support line would suggest that the trend is still bearish.
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The post Stellar (XLM) Price Boosted After Ukrainian Bank Completes Successful Pilot appeared first on BeInCrypto.
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