Stellar Lumens (XLM) price is nearing the end of a bullish pattern that has been going on for almost 18 months. A positive resolution could initiate a bullish reversal.
Stellar is a decentralized network created by the Stellar Development Foundation. heyOn January 13, TASCOMBANK, a Ukrainian central commercial bank, announced that it had successfully conducted an experimental test using the Stellar network. In turn, it has recommended the adoption of blockchain technology to transform the payment network in Ukraine.
regains stellar resistance
stellar worth It has fallen inside a descending wedge pattern since May 2021, when it reached a high of $0.798. Teahe descending wedge is a bullish pattern. is sleeping expected to lead to breakout majority of of time
The bullish signal does not stop at the descending wedge. While Stellar price broke the $0.084 support area in early December, it bounced off the support line of the wedge (green icon) and recovered it. Such reclamation is considered a bullish development because it renders previous breakdowns illegitimate. Now, XLM is trading very close to the price resistance line.
If there is a breakout, the next resistance will be at $0.13. On the other hand, a drop below the $0.084 area could drag the XLM price towards $0.062.
While the weekly RSI is rising, it has not generated any bullish divergence or moved above 50. Therefore, the bullish pattern And the re-claims are not accompanied by bullish indicator readings.
Short-Term Stellar Price Breakout
Technical analysis on the six-hour time frame shows that Stellar Lumens price broke a descending resistance line on January 10 (dashed). It subsequently accelerated its rate of increase, reaching a high of $0.090 on January 14. The high validated the $0.09 resistance area.
However, the six-hours RSI has generated a bearish divergence (green line) over the past 24-hours, indicating that there could be a downside move. If one happens, XLM price could decline further towards the rising support at $0.084.
On the other hand, if the digital currency breaks above $0.090, it could accelerate its rate of increase. In turn, this could lead to a breakout from the long-term descending wedge.
To conclude, the most likely Stellar price forecast is a short-term retracement followed by a breakout from a longer-term descending wedge. A breakout from the wedge would confirm the long-term bullish trend. On the other hand, a break from the short-term ascending support line shows that the trend remains bearish.
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