The Stellar (XLM) price has not been having the best of luck over the last few weeks. It was recently rejected by long-term resistance at the end of April, and ever since then, a bearish trend has been in place. Throughout the start of the year, the value of Stellar had been steadily increasing, however, at the end of April it created a bearish engulfing candlestick which rejected further growth. The Relative Strength Index (RSI), which is used for trading to determine whether to buy or sell an asset, is giving a bearish reading that supports the continuing downward swirl of the XLM price. Technical analysis from the daily timeframe also shows a bearish prediction. A-B-C correction is complete, and the price has broken out of its ascending parallel channel.
Although the bearish predictions are well founded, the RSI is giving a reading of bullish divergence (green line). If the XLM price holds at its support line at $0.080, and does not break through the channel’s midline, this could lead to an increased momentum for the Tokens price. An upward movement towards the channel’s resistance line at $0.10 would be likely if it overcomes this point.
The future trend of XLM however, will hang in the balance depending on whether it passes the current resistance level. Breaking out on the other hand, could signal the beginning of new growth, and push the currency’s value ahead. Either way, traders and investors should watch the Stellar coin closely for near-term indicators of where the sharp direction will take its price.
Benjamin Anderson
- 2023-05-04
Price Struggles of XLM in the Midst of Bullish and Bearish Predictions
The Relative Strength Index (RSI) of Stellar (XLM) shows a bearish reading, but a bullish divergence (green line) gives hope for further growth. An examination of the current technical analysis of the cryptocurrency and its current resistance level will help determine its short-term direction and price.
![CandleFocus Stellar-XLM-Price-Bullish-Bearish-Predictions](https://images.candlefocus.com/Price-Struggles-of-XLM-in-the-Midst-of-Bullish-and-Bearish-Predictions.jpg)