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:

On Apr 18, the price of XLM reached a high of $0.12 and €0.106. It has been gradually decreasing since. The decrease intensified on Apr 24.

XLM/USD & XLM/EUR Prices: Feb 8 – Apr 26

At the time of writing, the price had reached lows of $0.095 and €0.085.

Will the price of Stellar lumens continue to decrease or should we expect a reversal soon?

Let’s find out:

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.

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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:
XLM/USD
XLM/EUR

The closest support area for Stellar lumens is found near $0.09 and €0.075. While prices could reach this level in the event of a breakdown, we do not believe this to be likely in the near future.

It is more likely than the resistance line will be reached with prices possibly exceeding $0.1 and €0.09 in the short term.

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:

LONG-TERM XLM/USD ANALYSIS

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.