At BeInCrypto, we publish regular price analyses and predictions for various cryptoassets. In our Apr 24 analysis of Stellar lumens (XLM), we predicted the price would decrease. Our prediction was validated on Apr 25 when the price reached the support area we have defined below. To learn more, read our latest XLM/USD($) and XLM/EUR(€) analysis below:
Stellar Lumens (XLM): Highlights for April 26, 2019
- The price of Stellar lumens has been on a downtrend since Apr 18.
- XLM/USD and XLM/EUR are trading inside a symmetrical triangle.
- There is bullish divergence developing in the RSI.
- There is support near $0.09 and €0.075.
Current Trading Pattern for Stellar Lumens
In this section, we analyze the price of XLM/USD at six-hour intervals from Feb 8 to Apr 26 to trace the current trading pattern. In order to avoid confusion, we will not be using images of the XLM/EUR pair until the summary, where the relevant resistance and support areas will be shown in dollars and euros.
On Apr 18, the price reached a high of $0.121. A downtrend ensued and the price has reached several lower highs.
Tracing these highs gives us a descending resistance line:
On Feb 6, the price reached a low of $0.072. Several market cycles have been completed and the price has reached a higher low each time.
Tracing these lows gives us an ascending support line. The support and resistance lines combine to create a symmetrical triangle:
It is likely that the price will trade inside the confines of this triangle until a decisive move occurs.
In order to predict the direction of the move, we need to take a look at some technical indicators.
Technical Indicators
In this section, we analyze the price of XLM/USD alongside the RSI.
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
RSI is traced in the graph below:
On Apr 24, the price made a low of $0.099. It proceeded to create a lower low of $0.094 on Apr 25.
Similarly, the RSI made the first low on Apr 24. However, it has continued to generate higher values since.
This is known as bullish divergence and often precedes price increases.
The use of this indicator suggests that the price will increase towards the resistance line of the triangle.
Reversal Areas
To determine the actual possible future price levels, we incorporate support areas into the analysis.Support areas are created when the price visits the same level several times. If a breakdown occurs, they can create possible areas of reversal.
These are shown in the graph below for both XLM/USD and XLM/EUR:
Summary of Analysis
Based on this analysis, the price of Stellar lumens is likely to increase towards the resistance line of the triangle. Price may reach around $0.105/ €0.09 Do you think the price of XLM will begin a reversal? Let us know in the comments. If you’re interested in Stellar lumens price predictions for 2019 and 2020, click on the green button below: 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.
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.
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)
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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