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On May 20, thelumens price (XLM) reached a high of $0.146. After a rapid decrease, similar highs were reached on May 30. Another decrease followed shortly after.
Where is the price heading to next? Let’s find out.
On May 20, XLM/USD reached a low of $0.146. A rapid decrease ensued and the price reached a low of $0.113 on May 23.
The Stellar lumens price has been increasing since, trading inside the ascending triangle outlined below:
Both the support and resistance lines have been touched three times. At the time of writing, the Stellar lumens price was trading very close to the support line of the triangle.
Will a decisive upward or downward move occur?
The Stellar lumens price (XLM) is analyzed at daily intervals alongside the RSI and the MACD.
Since the beginning of February, the price has been trading inside the ascending, broadening wedge outlined below:
The Stellar lumens price enjoyed gradual increases throughout March, creating several higher highs. However, on April 8, a downward move began. The price reached the support line on May 8.
Another upward move began and the price reached a high of $0.163 on May 16. However, it immediately decreased to close below $14, creating a bearish doji candle. Candles with values higher than $14 have been characterized with long upper wicks.
Furthermore, the RSI and the MACD have both been generating bearish divergence since May 15 and 18, respectively. Combined with the formation of bearish candle patterns, this makes us believe that the price will break down from the triangle and head towards the support line of the wedge.
However, this decrease will most likely not follow a straight line.
Next, we will analyze possible reversal areas between current Stellar lumens prices and the support line of the wedge.
One support area is traced for Stellar lumens (XLM) below. If the price breaks down from the triangle, it is likely to provide a reversal.
The closest support area is found near $0.11. If the price breaks down from the triangle, it could initiate a short-term reversal. However, we believe that the price will eventually reach the support area which is currently near $0.09.
To conclude, we believe that the Stellar lumens price (XLM) has likely reached a top. An analysis of indicators and candlestick patterns makes us believe that a breakdown from the current trading pattern will occur soon. The price will likely reach the support area at $0.11.
Do you think the Stellar lumens price (XLM) will break down from the triangle?
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.
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