From the mid-May 2021 onwards the XLM coin has been moving in a downtrend and has declined enormously in 8 months. The bulls tried to push the price up but couldn’t cross the swing high of $0.43 and returned back to its support zone of $0.21.
In the past few months, Stellar (XLM) has been trailing sideways in between the peaks and the troughs. The coin has failed to surpass either of the horizontal lines and move in any direction sturdily. The price range in between which the coin is trailing is between $0.43 and $0.21. On December 04, there was an immense bear volume but still the coin couldn’t break the support line and slope down further.
On the daily chart, the MACD line being above the signal line and the histogram chart showing green candles is a signal of bullish trend. The RSI being at 56 is currently neutral but it may head towards the overbought zone. The volume bars are showing inaccessible price action in favor of bears or bulls as there hasn’t been any major price movement in any of the directions. The formation of an ascending triangle pattern can be an opportunity for the bullish investors. A minimum target of $0.43 can be expected if the price continues to uplift from this point. In the long run if the price crosses the resistance line of $0.43, an incredible return can be gained by the bulls.
On the weekly chart, XLM has constantly followed the downtrend line with the formation of bearish candles. However, the price took a U-turn before reaching the support line and is outside the premises of the downtrend line. Though the indicators have still not indicated any uptrend price move, looking over the formation of candlesticks and the trend lines an upsurge in the price can be expected. On December 20, 2021 there was a formation of bullish engulfing pattern after which the price began to flow in upward direction. Though there hasn’t been any favorable bulls volume nor the technical parameters are giving any signal in the long time frame charts, the investors should find out more information for the future of Stellar using the shorter and longer time frame charts for an efficacious trading opportunity.
Credit: Source link