At BeInCrypto, we publish regular price analyses and predictions for various cryptoassets. In our Apr 18 analysis of Stellar lumens (XLM), we predicted the price would decrease first and then increase. The price has decreased to touch the support line of the channel we defined but has yet to begin its upward move. To learn more, read our latest XLM/USD($) and XLM/EUR(€) analysis below:
Stellar Lumens (XLM): Highlights for April 22, 2019
- The price of Stellar lumens has been on a downtrend since Apr 18.
- XLM has been trading inside a horizontal channel.
- There is bullish divergence developing in the RSI.
- There is resistance near $0.125 and €0.11.
Current Trading Pattern for Stellar Lumens
In this section, we analyze the price of XLM/USD at one-hour intervals from Apr 11 to Apr 22 to trace the current trading pattern. In order not to create confusion, we will not be using images of the XLM/EUR pair until the summary, where the relevant resistance and support areas will be shown in dollars and euros.
On Apr 11, the price reached a low of $0.109. A gradual increase was followed by a decrease. The price reached the same level several times.
Tracing these lows gives us a horizontal support line:
On Apr 15, the price reached a high of $0.120. Several market cycles have been completed since and the price has reached the same level again.
Tracing these highs gives us a horizontal resistance line.
The support and resistance lines combine to create a horizontal channel:
It is likely that the price will keep trading inside the confines of this channel until a decisive move occurs. In order to predict the direction of the move, we need to take a look at some technical indicators.
Technical Indicators
In this section, we will analyze the price of XLM/USD at one-hour intervals from Apr 17 to Apr 22 alongside the RSI.
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
The price made a low of $0.109 on Apr 21. It reached a similar level on Apr 21.
Similarly, the RSI made the first low on Apr 21. However, it has continued to generate higher values since.
This is known as bullish divergence and often precedes price increases.
The use of these indicators suggests that the price will increase towards the resistance line of the channel.
Reversal Areas
To determine the actual possible future price levels, we incorporate resistance areas into the analysis.Resistance areas are created when the price visits the same level several times. If a breakdown occurs, they can create possible areas of reversal.
These are shown in the graph below for both XLM/EUR and XLM/USD:
Summary of Analysis
Based on this analysis, the price of Stellar lumens is likely to keep trading inside the confines of the horizontal channel. We believe that the price of XLM/USD and XLM/EUR will increase in the short term. It is likely that prices will near the resistance line of the current trading pattern. If the resistance line is reached, both a breakout or reversal appear possible. Do you think the price of XLM will break out from the channel? Let us know in the comments. If you’re interested in Stellar lumens price predictions for 2019 and 2020, click on the green button below: Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Disclaimer
In line with the 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, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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