Stellar (XLM) price showed different looks on different time charts. The resolution of the short-term pattern will determine the direction of the future trend.
XLM The price declined after hitting an all-time high of $0.798 in May 2021. Since September 2021 (red circle), it has fallen below a descending resistance line. The downside move fell to $0.098 in September 2022.
Throughout the decline, XLM also broke out of the $0.135 horizontal area (red icon). This represents a very important horizontal level as it has been acting as both resistance and support (green icon) intermittently since May 2019. The area is likely to act as resistance once again. On the other hand, it coincides with the descending resistance line mentioned above.
As a result, an XLM price break above this is required for the trend to be considered bullish.
Koinfinans.com As we reported, the weekly RSI supports this possibility as it forms an uptrend (green line). However, the price action is not bullish as there is no breakout yet.
If this happens, the rate of increase is likely to accelerate as there is no resistance up to $0.27 on the chart. Measured from the current price, this represents an increase of 140%.
On the other hand, if the downside continues, Stellar price could drop to $0.075.
Stellar (XLM) Quite Neutral in the Short Term
Despite the bullish on the weekly timeframe, the daily price action is pretty neutral. First, XLM price has been following a descending resistance line since May 11. The line has been verified five times (red icons) and has clearly proven its existence.
As a result, the price has been following an ascending support line since the beginning of September. When these two lines are combined, they form a symmetrical triangle, which is considered a neutral pattern.
Indeed, the daily RSI is freely moving above and below 50 as a sign of a neutral trend. Also, there has been almost no movement in the last 24 hours.
As a result of these technical analysis, Stellar priceWhether or not the triangle leaves the triangle will likely determine the direction of the future trend.
Wave Number Can Be Used to Determine Price Trend
Since the weekly and daily time frames do not match, an interpretation can be made using wave number theory.
Viewed from the all-time high, XLM is completing an ABC corrective build (black). The lower wavenumber is given in red. Due to the existence of the triangle, XLM price is probably in the fourth wave of this five-wave decline.
A 1:1.61 ratio to A:C waves would create a drop near $0.075 to coincide with the long-term horizontal support area outlined earlier.
However, there is no harmony between the number of waves and different price charts. As a result, the course of the price is still quite uncertain. Despite all the stated bullish forecasts, a decline would not be surprising.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.