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The price of Stellar (XLM) has surpassed diagonal resistance levels on both the long and short terms, which is promising for the price in the future. What can be predicted for the future of the XLM price?
Numerous positive indicators are present for XLM over a range of timeframes, suggesting that the trend is bullish and that a substantial price gain may be on the horizon.
Since the start of the year, Stellar’s value has been rising gradually, with a significant development taking place in January. A declining resistance line that had been in place since the record high was broken at the time the price did so. Such breakouts from long-term structures frequently occur after significant upward advances because they indicate that the correction is over.
The price of XLM increased once the resistance line confirmed that it was a support (shown by a green indicator), surpassing the previous resistance level of $0.100. indicating a favorable trend for purchasers. The next resistance level, which is marked on the chart as $0.235, will be reached if the price rises further.
The weekly Relative Strength Index (RSI), which has crossed the 50 mark (shown by a black symbol), also confirms the trend of growth. By monitoring how rapidly an item’s price changes, the RSI is a measure that aids traders in determining whether an asset is overpriced or undervalued. It also considers how quickly the price has changed recently to determine when it is best to purchase or sell. Movements over 50 indicate that buyers are gaining traction.
The weekly study’s optimistic estimate for the price of Stellar is supported by the daily technical analysis of the price movement. It thus portends good for the price in the future. On March 21, the price crossed a line of resistance that was pointing downward, and on April 1, it reached a new high for the year of $0.114.
According to Elliott Wave theory, the price increase that has been observed since the beginning of the year is most likely a five-wave pattern, with the price now in wave three (white). Black indicates the shorter-term sub-wave count. The argument that the rise is impulsive is supported by the fact that wave three is longer than wave one.
Technical analysts employ the Elliott Wave theory as a tool. In order to establish the trend’s direction, it primarily looks for recurrent long-term price patterns and investor psychology.
Therefore, a price of $0.121 on average is the next likely objective for the top. This would result in a 1:1.61 Fib ratio between waves one and three. As a collection of horizontal lines generated from the Fibonacci sequence, Fibonacci retracement levels function. These highlight potential hot spots for support and opposition. Therefore, the entire price increase might come to a halt at a price of around $0.150.
The XLM price forecast that stands the best chance of coming true is one that moves up approaching the next resistance at $0.150. The sub-wave one high at $0.099 (shown by the red line) is where the price must be in order to avoid invalidation. In that event, the price of XLM may fall to $0.070.
