It’s short-term price movement was outlined perfectly by the institutional trader and analyst WenBenko, who stated that the XLM price has been trading inside a descending wedge since November. While it is approaching a strong support area and is nearing the end of the wedge, it needs to have more volume in order to initiate a decisive move. https://twitter.com/WenBenko/status/1206472632838705152 Since the tweet, the XLMprice has actually broken down below this descending wedge. Where will it go next? Keep reading below if you are interested in finding out.73% increase in #Stellar accounts
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Descending Wedge Breakdown
The XLM price had been decreasing since reaching a high of 931 satoshis on November 11. Afterwards, it began trading inside the outlined descending wedge, from which it broke down on December 16. Currently, the XLM price is very close to reaching the 600-610 support area. A breakdown below this area would take the price to the September lows at 550 satoshis. As stated in the tweet, the volume has been low, again discounting the volume which was recorded on the November 12 wick.

Long-Term XLM Support
The XLM price had been following an ascending support line since March 2017. The price broke down in August 2019 and, afterward, retested it twice. We can see that the November 11 high validated the ascending support line. The most likely scenario after such a movement is that the XLM price decreases towards the next support areas — which are found at 550, 400 and 200 satoshis, respectively. However, the weekly RSI reached a low of 22 satoshis in September, the lowest value ever recorded. This suggests that the price is likely to begin a new market cycle. The possibility of this would be strengthened if the price makes a double bottom at 550 satoshis, combined with a bullish divergence in the RSI.
Future Movement
In lieu of the conflicting outlook from the weekly chart and the lack of volume, we believe the most likely move is a consolidation between the two outlined areas below. While it is possible that the bounce will go above the current resistance area and reach the breakdown level at 710, the first scenario seems more likely. A decisive attack of the resistance area with a strong volume would make the second scenario more likely. In any case, we are expecting the price to consolidate.
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.
