Stellar (XLM) price has surpassed the long and short term diagonal resistance levelsAnd A positive sign for the future price. What can be expected for the price of XLM in the future?
There are several bullish signals for XLM on different timeframes, which indicates that the trend is bullish, and a big price rally could follow soon.
Stellar’s value has increased steadily since the beginning of the year, with a notable breakthrough in January. That’s when the price broke the descending resistance line that had been there since the all-time high. Large upward movements often follow such breakouts from long-term structures, as they signify that a correction is over.
After confirming the resistance line as support (denoted by a green symbol), XLM price crossed the long-term resistance level at $0.100. Marking a positive trend for buyers. If the price continues to rise, the next resistance level will be at $0.235, which can be seen plotted on the chart.
The Weekly Relative Strength Index (RSI) also supports the continued increase, having crossed the 50 level (indicated by a black symbol). The RSI is a tool that helps traders understand whether an asset is overvalued or undervalued by measuring how quickly its price is changing. Moreover, it looks at how fast the price has moved recently to determine when is the right time to buy or sell. Moves above 50 are a sign that buyers are having momentum.
XLM Price Prediction: The number of waves supports the increase
The daily price trend technical analysis confirms the positive expectation of a stellar price presented by the weekly analysis. Therefore, it bodes well for the future price. On March 21, the price broke the descending resistance line and climbed to a new high of $0.114 on April 1.
Using the Elliott Wave theory, the price increase seen since the beginning of the year is likely to be part of a 5-wave pattern, and the price is currently in the third (white) wave. The number of short-term subwaves in black. The fact that the third wave is longer than the first supports the idea that the rally is impulsive.
Elliott Wave Theory is a tool used by technical analysts. Essentially, it looks for long-term recurring price patterns and investor psychology in order to determine trend direction.
Therefore, the next potential target for the top is the $0.121 average price. This will give waves one and three a Fibonacci ratio of 1:1.61. Fibonacci retracement levels act as a group of horizontal lines derived from the Fibonacci sequence. These indicate the main areas of support and resistance that may be encountered. So the entire price increase could end near the resistance area at the $0.150 average price.
Ultimately, the most likely XLM price prediction is for an increase towards the next resistance at $0.150. However, if the price falls below the top of the first sub-wave (marked with the red line) at $0.099, it may be invalidated. In this case, XLM price could see a drop to $0.070.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.