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Will Stellar (XLM) See Higher Prices After Clearing 616-Day Resistance?

2 mins
Updated by Ryan James
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In Brief

  • Stellar (XLM) price broke out from a descending resistance line.
  • It is trading above the $0.100 support area.
  • Stellar (XLM) could be in wave three of a five-wave increase.
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The value of Stellar has gone up since the start of the year. In January, it broke through a descending resistance line that had been in place for 616 days. Such breakouts from long-term structures usually result in significant upward movements.

After confirming the line as support (green icon), the price of XLM surpassed the long-standing resistance level of $0.100. This marks a positive development in a trend that favors buyers. If the price continues to climb, the next level of resistance will be at $0.235.

The weekly RSI supports the ongoing increase since it has surpassed the 50 level (black icon). The last time the RSI clearly went above 50 was in November 2020, which preceded a 900% price increase.

Therefore, it is possible that a similarly large price increase could occur again.

Stellar (XLM) Long-Term Price
XLM/USDT Weekly Chart. Source: TradingView

Stellar (XLM) Price Prediction for April: Possible Gains Ahead

The technical analysis of the daily time frame supports the optimistic outlook of the weekly analysis. On March 21, the price broke out of a descending resistance line. Later, it reached a new high for the year of $0.114 on April 1. Even though the price has decreased since the daily RSI has not generated any bearish divergence. This allows for the increase to continue.

Next, the increase since the beginning of the year is likely part of a five-wave increase. If so, the price is currently in wave three (white). The short-term sub-wave count is given in black. The fact that wave three is longer than wave one supports the possibility that the increase is impulsive. Therefore, the next likely target for the top is at an average price of $0.121, giving waves one and three a 1:1.61 ratio. Afterward, the entire move could end near $0.150.

A decrease below the sub-wave one high (red line) at $0.099 would invalidate this Stellar price forecast. In that case, the XLM price could drop to $0.070.

Stellar (XLM) Price Prediction for April
XLM/USDT Daily Chart. Source: TradingView

To conclude, the most likely XLM price prediction for April is an increase toward at least $0.150. A drop below $0.099 would invalidate this bullish outlook and could cause a fall to $0.070.

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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.

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...