The Stellar (XLM) price readings from long- and short-term time frames are in alignment and indicate that another final drop is expected prior to a bullish trend reversal.
The technical analysis from the weekly time frame provides a bearish outlook. The Stellar price has decreased since reaching a high of $0.80 in May 2021. The downward movement accelerated after the price created a lower high in Nov. of the same year (red icon).
So far, the XLM price reached a low of $0.079 last month. After a weak bounce, it is approaching the same level once more.
The weekly RSI is falling and has not confirmed any bullish divergence yet. As a result, the most likely Stellar price prediction is another drop towards the $0.078 support area.
The $0.078 area is crucial since it is the final support area prior to the March 2020 lows. So, a breakdown below it could trigger a sharp fall.
As a result, whether the Stellar price breaks down from the $0.078 support area or breaks out from the resistance line will likely determine the future trend.
Stellar Price Trades in Bearish Pattern
The short-term six-hour chart also provides a bearish outlook. The reason for this is that the Stellar price is trading inside a descending triangle, which is considered a bearish pattern. The support of the triangle is at $0.083.
A breakdown from it would confirm the pattern and likely lead to an XLM price decrease to the long-term $0.078 support area.
Conversely, a breakout from the short-term resistance line would invalidate this bearish price forecast.
Short-Term Count Supports Another Drop
Finally, the wave count also gives a bearish outlook.
Measuring from Oct. 9, it seems that the Stellar price is stuck in a five-wave decrease. If so, it is currently in wave four, which took the shape of a triangle. The sub-wave count is given in red. It suggests that after a short-term bounce, the Stellar price will break down from the triangle and complete the correction.
The Fib retracement on wave four predicts the price target of $0.075, very close to the long-term $0.078 horizontal support area.
If the price breaks out above the sub-wave C high at $0.091, it will invalidate this bearish wave count.
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BeinCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.