How to Prepare for Stellar (XLM) Price Next Leg Down

30 November 2022, 10:00 GMT+0000
Updated by Geraint Price
30 November 2022, 10:00 GMT+0000
In Brief
  • XLM is following a descending resistance line.
  • There is resistance at $0.10.
  • XLM is trading inside a symmetrical triangle.
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The Stellar (XLM) price is trading inside a short-term symmetrical triangle. Due to the preceding price action, a breakdown is the most likely scenario.

Stellar (XLM) price has decreased below a descending resistance line since May 10. The line caused four rejections so far (red icons), most recently on Oct. 9. 

On Nov. 8, XLM fell sharply, breaking down from the $0.1 horizontal support area in the process. The breakdown was seen in the rest of the crypto market and led to a low of $0.079 the next day. The breakdown caused the RSI to reach its second-lowest-ever value at 24 (red circle). 

The indicator has been moving upwards since. However, it has not generated any bullish divergence or moved above 50. 

As a result, the XLM price prediction is considered bearish until the price reclaims the $0.1 area. Failure to do so would not bode well for the future price.

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XLM Price Resistance
XLM/USD Daily Chart. Source: TradingView

XLM Price Breakdown Incoming?

The price chart from the six-hour time frame is also bearish. The Stellar price is trading inside a symmetrical triangle since Nov. 9. While the symmetrical triangle ins considered a neutral pattern, it is transpiring after a downward movement. As a result, a breakdown from it would be the most likely scenario. The sub-wave count inside the triangle is given in black.

Measuring the triangle’s height and projecting it to the breakdown level gives a price target of $0.068.

Conversely, increasing above the wave C high of $0.091 (red line) would invalidate this bearish XLM price prediction.

XLM Triangle Breakdown
XLM/USD Daily Chart. Source: TradingView

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Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.