Stellar Lumens (XLM) price increased significantly on March 21 and is trading inside a key yearly resistance.
XLM is the native digital currency of the Stellar network, which was created by the Stellar Development Foundation. Its founder is Jed McCaleb, who was previously the co-founder of Ripple. When it comes to cross-border payments, XLM offers a better alternative relative to fiat currencies, offering very low transaction costs along with high speeds.
Stellar price has declined since April 2021, when it reached a high of $0.80. The decline ended with the December 2022 low at $0.070. The price is correcting higher since validating the $0.072 horizontal zone as a support.
Shortly after, XLM broke above the resistance line and validated it as support during the week of March 6-13, forming a long lower wick (green icon) and a higher low in the process. Both the wick and the breakout are considered bullish signals.
Since Stellar price broke its main diagonal resistance area, it is now trading in a sideways range between $0.072 and $0.110.
The weekly RSI is rising but still below 50. Therefore, the direction of the long-term trend is still uncertain.
Stellar (XLM) Price Reaches Important Resistance
Technical analysis on the daily time frame shows that XLM price has followed an ascending support line since the beginning of the year. Most recently, it bounced off the line on March 10 (red icon), leading to the current rise.
On March 21, Stellar Lumens price formed a bullish engulfing candlestick and reached a new yearly high of $0.099. Besides, the daily close was the highest since November 10. Finally, the daily RSI broke above its bearish divergence trend line and climbed above 50.
However, the price failed to break out of the $0.094 resistance area, which was present since January. Since then it has decreased in 24 hours. While several bullish signals support the possibility of a breakout, the trend cannot be considered bullish until the price action confirms it.
In that case, XLM price could rise towards the long-term resistance line at $0.110. However, if the rejection continues, XLM could slide back towards the $0.080 ascending support line.
To conclude, the most likely Stellar price forecast is a continuation towards $0.110. However, if the price fails to close above $0.094, it could decline further towards the nearest $0.080 support.
For the latest crypto market analysis from BeInCrypto, click here.
BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.