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.
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
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.
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.
To determine the actual possible future price levels, we incorporate support areas into the analysis.
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:
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.