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For a while, the rise of XLM Coin among popular altcoins has been attracting attention. But is this rally coming to an end? XLM has made significant gains while many other altcoins, like DOGE, have been falling. Investors have been chasing opportunities in altcoins ahead of the upcoming Fed meeting. So, does XLM Coin still promise gains?
Stellar (XLM) Coin
On July 13, the price of XLM Coin began a rally and reached its local peak at $0.1977 on the same day. Since then, it has been falling from its yearly high, forming consecutive long upper wicks. However, the price is still trading above the breakout level and has confirmed it as support with the ongoing bounce.
In the weekly time frame technical analysis, it can be observed that XLM surpassed the long-standing 400-day resistance at $0.13 on July 10 and reached a new yearly high of $0.20. This breakout from a significant long-term level indicates the beginning of a convincing uptrend.
XLM Coin Price Target
After reaching the highest level, XLM experienced a significant decline and formed a long upper wick. This is considered a sign of selling pressure, indicating that buyers do not have enough power to sustain the increase. However, the price managed to hold above $0.13. It bounced this week and confirmed it as support. Such behavior is typical after a price breakthrough of a resistance level. The Weekly Relative Strength Index (RSI) provides a positive indication.
According to the Elliott Wave analysis conducted on the daily time frame, there is a positive outlook for the price of XLM. The current count indicates that XLM is in the fourth wave of a five-wave upward movement. The fourth wave suggests that the price has started to rise towards $0.23 if it has indeed turned from a local bottom as it appears now.
Following the completion of this five-wave increase, a corrective stage will follow. A breakout from the triangle will confirm this possibility. Although this prediction is in the bullish direction, it is important to note a very significant condition to keep in mind. If the price closes below $0.12, which is the highest level of the first wave, we could see a rapid decline towards $0.09.
