Recent analysis of Stellar (XLM) shows that the crypto has broken out from a descending resistance line that had lasted for 616 days prior, consequently validating the line as a support. After reclaiming the key long-term resistance area of $0.100, it is clear that the crypto is in the process of a bullish pattern reversal. This was further confirmed by the weekly RSI, which has validated above the 50 mark - a sign that often leads to a significant price increase of 900%.

The technical analysis of the daily charts suggests a further continuation of the increase. On March 21, Stellar broke out from a descending resistance line and reached a new yearly high of $0.114. However, it was quickly rejected, leading to a fall below the wave one high at $0.099. The current readings from the weekly and daily frames are bearing the signs of a bullish structure and hence, it is likely to resume its upward movement and create higher lows.

If this prediction is accurate, true to the five wave pattern, Stellar is expected to gradually move towards reaching a long-term resistance of $0.230. Despite this, it is pertinent to remember that if the price falls below the critical support line of $0.099, the Stellar could drop towards its yearly low of $0.070 and nullify the optimistic forecast.



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