- Stellar is following a long-term downward resistance line. It is trading above the long-term support area of $0.078.
- XLM price has created a descending triangle in the short term.
Stellar (XLM) price data from long- and short-term timeframes are consistent and indicate that another final drop is expected before an uptrend reversal. The weekly timeframe’s technical analysis offers a bearish outlook. Stellar price has fallen since it peaked at $0.80 in May 2021. The move down accelerated after the price made a lower high in November.
Of the same year (red icon). So far in the last month, XLM’s price hit a low of $0.079. After a weak jump, it approaches the same level again. The weekly RSI is falling and has yet to confirm a bullish divergence.
As a result, Stellar’s most likely price prediction is another decline toward the $0.078 support area.
The $0.078 area is crucial as it is the last support area before the March 2020 lows. Therefore, a drop below it could trigger a sharp drop. The break of the resistance line is likely to determine the future trend.
Stellar Price Trades in Bearish Pattern
The short-term 6-hour chart is also showing a bearish outlook. This is because the Stellar price is trading inside a descending triangle, considered a bearish pattern. Triangle support is at $0.083.
A breakdown would confirm the pattern and likely result in a drop in XLM price to the long-term support area of $0.078. Conversely, a short-term break of the resistance line would invalidate this bearish price prediction.
Short-Term Count Supports Another Drop
Finally, the wave count also offers a bearish outlook. As measured from October 9th, Stellar price appears to be stuck in a five-wave decline. If so, you are currently in wave four, which has taken the shape of a triangle. The number of partial waves is shown in red.
Suggest that Stellar price break out of the triangle after a short-term bounce and complete the correction. Wave four Fib retracement forecasts a $0.075 target price, close to the long-term horizontal support of $0.078 if the price breaks the $0 C subway high. 091 will invalidate this bearish wave count.