Amidst the uncertainty in the price of Bitcoin, crypto investors are eagerly awaiting the Federal Reserve’s interest rate decision today. With the market not being very optimistic, Bitcoin continues to stay below $30,000. We can see that cryptocurrencies, in general, are experiencing a negative divergence. However, there hasn’t been any noticeable negativity in the US markets in recent days. So, are there still opportunities in altcoins? Absolutely.
The price of Stellar (XLM) coin has dropped since reaching its yearly high on July 13. However, it is trading within a continuation pattern that could lead to a breakout. Furthermore, both the price movement and wave count indicate that the trend is still bullish. Therefore, we may see it reach new highs in the near future.
Recently, XLM Coin has gained popularity with its price increase. It broke through the 616-day resistance line at the beginning of January. After confirming this as support two months later, it continued its upward movement. Breaking this significant long-term level is often interpreted as the start of a steady uptrend.
After breaking out of the $0.105 horizontal resistance area, XLM Coin’s price confirmed the breakout from the long-term resistance line. This allowed the price to reach its new yearly high of $0.195 this month. However, after reaching the highest level, XLM experienced a significant drop and formed a long upper wick. This indicates selling pressure and suggests that buyers may lack the strength to sustain further price increases.
Weekly RSI and Elliott Wave analysis on the daily timeframe suggest that the strong uptrend may continue. According to the current Elliott Wave count, XLM’s price appears to be in the fourth wave of a five-wave upward movement. This fourth wave has formed a triangle formation, which is commonly observed in this wave phase.
If we assume that this count is correct, we can say that the price has already reached a local bottom. After some consolidation, breaking out of the triangle and starting the rise towards the next resistance level at $0.23 is likely. After completing the five-wave uptrend, the price of XLM Coin may initiate a corrective wave.
Despite the optimistic XLM price prediction, it is important to keep one crucial condition in mind. If the price closes below the highest level of the first wave, which is $0.12, it will increase the likelihood of a downturn.