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The altcoin that has been trading on the Binance exchange for years may soon initiate a rapid recovery period. So, what are the critical levels? The current price is at the threshold of an important resistance level. Moreover, the strong support line that will allow the rise to continue during the general market downturn is preserved.
Stellar (XLM) Coin Review
The price of Stellar started a strong recovery that allowed it to form a long lower wick on August 17th. It is trading at a point where resistance levels converge. Whether it breaks or rejects this point may determine the future trend. The readings on the weekly chart indicate that XLM price has broken out of a 616-day resistance line at the beginning of the year. Such a breakout from a long-term structure indicates a reversal of the downward trend.
The breakthrough of the 616-day resistance, which nourishes the long-term bullish outlook, led to the acquisition of the $0.105 horizontal area. In July, the price reached its annual peak at $0.195. However, Stellar lumens has fallen since its yearly high. It formed a long upper wick, which was considered a sign of selling pressure, in the same week. The decline continued until the $0.105 support level last week. As mentioned above, the reaction from this level indicated that buyers were still willing to rise further.
XLM Coin Price Prediction
If the uptrend continues, XLM price can reach $0.23 again, representing an 86% increase. On the other hand, if the rally loses momentum, the price can drop 43% to the $0.105 region. The analysis on the daily timeframe provides an uncertain perspective on the price movement of XLM. The price reached a low level of $0.105 from July 13th to August 17th after falling below a descending resistance line. However, the $0.110 support has been confirmed.
Despite this recovery, XLM could not surpass the descending resistance line. The failure to break the $0.13 resistance today could be an early sign of failure. There are mixed signals when looking at the daily RSI. The indicator is bullish but remains below 50 and also below the descending resistance line. Just like the price movement, the RSI breaking or rejecting will be crucial in measuring the future trend.
In summary, the future of XLM’s price depends on whether it can break or reject the resistance line. A successful breakout can lead to a 27% rise towards $0.160, while rejection can trigger a 14% drop to $0.110.
