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Stellar (XLM) Bounces At Support, Heads Towards The Range High

2 mins
Updated by Ryan Smith
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In Brief

  • XLM has broken down from a long-term ascending support line.
  • There is resistance and support at $0.077 and $0.062, respectively.
  • The price is possibly in the B wave of an A-B-C correction
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The Stellar (XLM) price has been declining since reaching a high of $0.076 on June 4.
However, on June 27, the price bounced inside a vital support area and has been increasing since.

Ascending Support Line

The XLM price had been increasing alongside an ascending support line since the March 13 bottom. The price broke down from this support line on June 14 and has been declining since. However, on June 27, the price bounced on the $0.062 support area and reclaimed the 200-day moving average (MA) shortly after, which now provides support. The closest resistance area is at $0.077.
XLM Ascending Support
XLM Chart By Tradingview
It’s worth noting that the $0.077 resistance area has been in place since August 2019. It won’t be easy to break through. So far, it has rejected the price four times, and each rejection has caused a lower low. Since volume has been declining from the last two attempts, the current sign is of weakness.
XLM Weekly Resistance
XLM Chart By Tradingview

Short-Term Movement

In the short-term, the price has broken out from a descending resistance line. The previous bounce at the $0.062 support area seems to have been the end of a five-wave Elliott formation, after which an A-B-C upward correction began. The most likely target for this correction would be another touch of the $0.077 resistance area before the price moves downwards. The resistance area will also soon coincide with the resistance line of the current rising parallel channel.
XLM Short-Term Movement
XLM Chart By Tradingview

Wave Count

Cryptocurrency trader @Raintrader14 outlined an XLM chart, stating that the price has likely finished the correction, and is now heading towards $0.14. He suggests that the price has just completed an A-B-C correction, and the price will soon begin a new impulsive wave. The formation is quite unusual, however, since the B wave is considerably above the prior fifth wave.
XLM Movement
Source: Twitter
Looking closer at the movement since the March 13 bottom, it seems more likely that the five-wave formation was completed on June 4. Therefore, the price is most likely in the B wave of an A-B-C correction. The C wave is expected to end near $0.05, after which the price could continue moving upwards. XLM Wave Count To conclude, the XLM price seems to have begun a short-term upward move towards the resistance area at $0.077. After reaching this area, the price should decrease.
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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 ConditionsPrivacy Policy, and Disclaimers have been updated.

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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)
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