The price of Stellar (XLM) rose to a 15-month high. What's next
Date: 2023-07-21 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
On July 13, the Stellar (XLM) rate increased significantly, updating the annual maximum. However, the price has since dropped
Despite the decline, the dynamics of Stellar and the values of the indicators on several timeframes confirm a bullish trend reversal. They indicate that the price increase is not over yet, and it will reach a new annual high.
Stellar broke through 400-day resistance
As the results of the technical analysis of the weekly chart show, the price of XLM broke through the 400-day resistance area at $0.13 on July 10 and updated the annual high at $0.20. Breakouts of such long-term structures often indicate that price has started a new bullish trend reversal.
After reaching an all-time high, the price of Stellar plummeted, forming a long upper wick (red icon). However, the token remains above the $0.13 area and is likely turning it into support. This often happens after a breakdown of the resistance level.
The weekly Relative Strength Index (RSI) also gives bullish signals. The indicator is rising and above 50, which is considered to be signs of a bullish trend.
XLM forecast through the prism of wave analysis
Meanwhile, the wave analysis of the shorter daily timeframe also outlines an optimistic picture.
The most likely scenario assumes that the price of Stellar is in the fourth wave of a five-wave bullish structure. If this forecast is correct, then the price has already reached the local bottom and will soon rise to the next resistance at $0.23. This will complete the formation of a five-wave structure, after which the correction will begin.
However, absorbing the high of the first wave (red line) at $0.12 will cancel this bullish outlook and will mean that the trend has become bearish. In this case, the XLM price could fall to the next support at $0.09.
