If stellar (XLM) price manages to retest the $0.082 resistance area, it could start an upward move.
Stellar Lumens (XLM) price has declined below a descending resistance line since the 2021 high at $0.798. The decline reached a low of $0.070 at the end of December of the same year.
No signs of uptrend yet
Although the price of XLM increased, it failed to break out of the descending resistance line, instead forming a long upper wick (red icon). Besides, the weekly RSI is still below 50.
Therefore, there are no signals on the weekly time frame to suggest that the trend is bullish. Therefore, a drop towards the $0.076 support area is expected.
On the other hand, if the price manages to break above, the next resistance will lie at $0.130.
It is worth noting that the Stellar network will title sponsor In Paris Blockchain Week between March 21-23.
Can Stellar (XLM) Reclaim Lost Support?
While technical analysis from the weekly time frame is decisively bearish, the shorter six-hour time frame provides mixed readings.
On the bearish side, Stellar price was trading below a descending resistance line and it seemed to have broken below the $0.082 area, which marked the lowest price in the year. On the bullish side, the six-hours RSI has formed a bullish divergence (green line), a signal that could precede an upward move.
As a result, it is possible that XLM price will recapture this confluence of resistance levels and move higher. If this happens, it will also lead to a breakout from the long-term descending resistance line.
To conclude, future XLM price movement is undetermined. Whether the price recaptures the $0.082 area or gets rejected could help determine that. A breakout from the $0.082 area would also lead to a breakout from the long-term descending resistance line, with a potential rise towards $0.130. On the other hand, a rejection could lead a decline to $0.076.
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