Crypto News– Stellar coin price has experienced a decline since reaching its annual peak back in July, and it is now approaching a significant long-term horizontal support level situated at $0.105.
Stellar Coin Price in a State of Uncertainty: Exploring Two Potential Future Price Scenarios
Although the price briefly broke above a short-term descending resistance line, it struggled to sustain its upward momentum. A closer examination of the technical analysis on the weekly time frame reveals that the price of Stellar lumens has been on a downward trajectory since its yearly high of $0.195 in July 2023. This decline was sharp, resulting in an extended upper wick (indicated by the red icon).
In August, this downward movement found support at the $0.105 horizontal level, a key historical area that held up. Interestingly, this support generated a substantial lower wick (as denoted by the green icon), signifying notable buying pressure in the market.
Although the price experienced a subsequent bounce, it struggled to maintain its upward momentum and currently trades with just a 10% buffer above the $0.105 horizontal support level. Notably, despite the recent drop, the Relative Strength Index (RSI) continues to exhibit bullish sentiment. The RSI serves as a vital momentum indicator for traders, helping assess whether an asset is overbought or oversold and guiding their buy or sell decisions. When the RSI remains above 50 and trends upward, it signals an ongoing advantage for bulls, whereas a reading below 50 suggests the opposite.
XLM Price Forecast Remains Uncertain Following Inability to Sustain Breakout
Assessing the daily timeframe, our analysis yields mixed signals owing to both price action and RSI observations.
To begin with, XLM’s price exhibited a breakout from a descending resistance line on September 4, a development typically interpreted as a bullish indicator poised to drive a substantial price surge. However, the actual outcome defied expectations. Instead of recapturing the $0.130 horizontal zone, XLM’s price faced rejection, effectively confirming it as a formidable resistance level (as denoted by the red icon).
The inability to sustain the breakout is commonly regarded as a bearish signal, casting doubts on its durability.
Adding to the uncertainty, the RSI provides an inconclusive reading. The indicator currently hovers precisely at the 50 lines, indicative of an indeterminate trend.