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Stellar (XLM) Price Gives Bullish Signal, Could the Price Surge Again?

2 mins
Updated by Ryan James
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In Brief

  • Stellar (XLM) broke out from a long-term resistance line.
  • It broke out from a short-term horizontal resistance area.
  • Stellar (XLM) could be in wave three of a five-wave upward movement.
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The Stellar (XLM) price has cleared a long- and short-term resistance level, a forewarning of a potential pump.

The Stellar price has increased since the beginning of the year and broke out from a descending resistance line in January. Before the breakout, the line had been in place for 616 days. Breakouts from such long-term structures usually lead to significant upward movements. 

After validating the line as support (black icon), the XLM price reclaimed the $0.100 long-term resistance area. This is the next step in a bullish trend reversal. If the upward movement continues, the next resistance would be at $0.235. 

The weekly RSI supports the continuation of the increase since it has finally moved above 50 (red icon). The previous time the RSI decisively broke out above 50 (green icon) was in November 2020, preceding a 900% price increase.

As a result, a similar massive price surge may follow.

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

Stellar (XLM) Price Surges After Breakout

The technical analysis from the daily time frame supports the bullish outlook from the weekly one. On March 21, the price broke out from a short-term descending resistance line and then moved above the $0.095 minor resistance area. Afterward, it reached a new yearly high of $0.114 on April 1. However, the XLM price has fallen since the 0.618 Fib retracement resistance level rejected it.

Nevertheless, the readings from the weekly and daily time frames are decisively bullish, supporting the continuation of the increase. As a result, the Stellar price is expected to create a higher low and resume its upward movement.

Since the increase is likely part of a five-wave upward movement (black), a fall below the wave one high (red line) of $0.099 would invalidate the bullish price forecast. In that case, the XLM price could fall toward its yearly low close to $0.070.

Stellar (XLM) Price Count
XLM/USD Daily Chart. Source: TradingView

To conclude, the most likely XLM price forecast is bullish. The price is expected to gradually move toward the long-term resistance at $0.230. However, a fall below $0.099 would invalidate this bullish forecast and could lead to a drop toward $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. 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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