Stellar Price Prediction: XLM Broke Out of the Descending Wedge, Is a Double Bottom in Store?

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Long-Term Outlook

Stellar Weekly Logarithmic Chart

A look at the Weekly chart for XLM in logarithmic form shows that price is currently trading at $0.077, slightly above the main support area formed by the highs of 2017 near $0.06.

Price is trading below all the moving averages which have made numerous bearish crosses and the Ichimoku Cloud.

The RSI is at 36, indicating neither overbought nor oversold conditions.

However, there is some bullish divergence in the volume of the MACD, which looks to be steadying and possibly getting ready for a bullish cross.

Medium-Term Outlook

Stellar 3-Day Chart

A look at the 3-day chart shows that even though the price is still trading below all the moving averages, there is some bullish divergence developing in the RSI.

The RSI is at 29, indicating oversold conditions.

Furthermore, the MACD seems to have rejected a bearish cross and is moving upward albeit with minimal strength.

Stellar Daily Chart

A look at the Daily chart gives a slightly more bearish outlook than the 3-day one.

There is bullish divergence developing in both the RSI and the MACD.

Price is facing very close resistance from the 7-day moving average, which has previously rejected a bullish cross.

Short-Term Outlook and Price Prediction

Stellar 6-Hour Chart

A look at the 6-hour chart shows that price tried unsuccessfully to break through the resistance line and got pushed back.

The first minor resistance area can be found at $0.09.

Stellar 1-Hour Chart

Finally, a look at the 1-hour chart shows us that price was trading in a downward channel before breaking out.

Price is currently trading in the minor support area at $0.077.

Price Prediction:

I believe that this week price will double bottom at $0.072, before possibly breaking down and reaching the major support area near $0.06.

Conclusions:

  • Price is slightly above the support area of $0.06-$0.07.
  • There is some medium-term bullish divergence developing.
  • Price successfully broke out of the short-term descending wedge.

Stellar Price Prediction: XLM Broke Out of the Descending Wedge, Is a Double Bottom in Store? was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.

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