Stellar’s attempts to overcome the 4-month trend-line resistance were fruitless, as the area was turned into support by bulls during the most recent upswing. There was a recent upswing in buying activity, and price action is currently forming a rising wedge pattern with resistance at $0.125 as its goal.
If XLM were to close definitively above the current pattern, it would nullify the bearish tendencies. To maintain the current buying spree, bulls need to ensure large volumes of purchases. At the time this was written, one XLM was worth $0.124, up 3.36 percent in 24 hours.
Fantastical Daily Timeframe
The daily chart for Stellar has a 4-month trend-line of support, which was generated by the cryptocurrency’s previous downward excursion. Despite the alt’s drop to 20-month lows on July 13, purchasers quickly recovered. As a result, prices rose above their Exponential Moving Averages for the period of time being considered here.
Furthermore, a major improvement in the purchasing edge has not been confirmed by a bullish crossing of the 20 Exponential Moving Average above the 50 Exponential Moving Average. The likelihood of bearish invalidations might rise with such a cross.
In the meantime, the possibility of a pause for the alt within its pattern is welcomed by the opposition at $0.12. Bel bulls need the morning star candles to preserve their edge, though. If the price ends the day over $0.12, then we may go on to seeing if $0.135 is reachable.
However, short-term rebound expectations would be slowed by a likely negative reversal near $0.12. Concluding below the setup may usher in a lethargic phase close to the POC (Point of Control).
Reasoning
The Relative Strength Index (RSI) switched from resistance at 57 to support at 60, signaling a change to a bullish trend. If growth can be maintained past this point, there will be evidence of a favorable environment for continued expansion.
However, the overall volume did not match the price action of the prior week’s higher highs, although resonating with a trend of strengthening purchasing pressure. Since -DMI was still pointing south, the DMI lines indicated a strong desire for purchases. However, XLM’s ADX signaled a very weak directional bias.
In Conclusion
The rising wedge pattern is getting close to the resistance level around $0.125, suggesting that sellers may secure their rule around there. Invalidation of bearish cases could occur if the closing price is over this barrier. Objectives would remain as described. Finally, good judgments require investors to assess on-chain activities and general market signals.
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