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(XLM) has surpassed a long-term resistance line.
- It has continued its upward price movement from a short-term horizontal resistance area.
- Stellar (XLM) may be in the third wave of a five-wave upward movement.
Stellar (XLM) price may be trying to create a new trend by surpassing both long and short-term resistance levels.
The price of Stellar has been increasing since the beginning of the year and broke out of a falling resistance line in January. Prior to the breakout, the line had been in place for 616 days. Breakouts of such long-term structures often lead to significant upward movements.
After confirming the line as support (black line), the XLM price regained the $0.100 long-term resistance area. This is the next step in the reversal of the bearish trend. If the upward movement continues, the next resistance will be at $0.235.
The weekly RSI supports the continuation of the increase as it has finally risen above 50 (red symbol). The last time the RSI made a clear breakout above 50 was in November 2020 (green symbol), which came before a 900% price increase.
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As a result, a similar large price increase may follow.
Stellar (XLM) Price is Increasing After the Breakout
Technical analysis from the daily timeframe supports the bullish view from the weekly perspective. On March 21, the price broke out of a short-term falling resistance line and then rose above the $0.095 small resistance area. It then reached a new annual high of $0.114 on April 1. However, the XLM price fell because it was rejected by the 0.618 Fib retracement resistance level.
Nevertheless, readings from the weekly and daily timeframes clearly support the bullish view and support the continuation of the increase. As a result, it is expected that the Stellar price will form a higher low and continue its upward movement.
Since it is likely to be part of a five-wave upward movement (black), falling below the $0.099 wave high (red line) will invalidate the bullish price prediction. In this case, the XLM price may fall to the annual low of about $0.070.
As a result, the most likely XLM price prediction is the bullish view. It is expected that the price will slowly move towards the $0.230 long-term resistance. However, falling below $0.099 will invalidate this bullish prediction and may cause a drop to $0.070.
In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. COINOTAG is committed to accurate, unbiased reporting, but market conditions may change without notice. Always do your own research and consult with a professional before making financial decisions.