Stellar Lumens Price Analysis: Will XLM/USD Initiate an Upward Move?

How long will this increase continue? Below, we are going to analyze the XLM price in different time-frames alongside technical indicators in order to answer this question. If you want to trade cryptocurrencies safely and securely on our partner exchange, follow this link to get set up on XCOEX.

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Stellar Lumens Price: Trends and Highlights for July 8

• The XLM price is trading inside a symmetrical triangle.
• There is a significant bullish divergence developing in the RSI.
• The daily moving averages are providing resistance to the price.
• There is resistance near $0.113 and $0.12.

XLM Price in a Symmetrical Triangle

Since reaching lows close to $0.08 in March 2019, the XLM price has been trading inside a symmetrical triangle. On May 10, the XLM price touched the support line and began a rapid upward movement. On May 16, it reached a high above $0.16. These highs give us the descending resistance line which completes the triangle.

Technical Indicators

A rapid decrease ensued. Since then, the XLM price has been trading below both MAs, facing very close resistance from the 10-day one. At the time of writing, it made an attempt to move above the 10-day MA but was rejected at the 20-day one. A look at the RSI indicates that further upward movement is likely. The RSI has been generating bullish divergence since June 26. This divergence, however, is not present in the daily time-frame. It is only visible in time-frames of 12-hours or less. The use of these indicators makes it likely that the Stellar lumens price will initiate an upward move. However, there is significant resistance all the way to $0.12.

Reversal Areas

Two resistance areas are provided for XLM/USD below. If the XLM price initiates an upward move, it is likely to find resistance in these areas. They are found at $0.113 and $0.12 respectively. The $0.12 area also corresponds with the descending resistance line of the triangle. A breakout above this area would also cause a breakout from the triangle.

Summary

The Stellar lumens price has been decreasing since May 16, trading inside a symmetrical triangle. The divergence generated in the RSI indicates that the XLM price is likely to begin an upward move and reach at least one of the resistance areas outlined above. Do you think the XLM price will begin an upward move? Let us know in the comments below.

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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.  Images are courtesy of Shutterstock, TradingView.