After Stellar was rejected by a long-term resistance area at the end of November, it bounced off the support level of $ 0.15 and left a short-term descending resistance line.
As long as the 0.15 level remains, XLM is believed to continue rising towards target resistance levels.
Stellar’s Long Term Resistance
In the last week of November, the price of XLM climbed out of the $ 0.115 resistance area to $ 0.235. Stellar reached its highest value just above the $ 0.19 resistance area. XLM has not traded above this level since it initially fell below this in November 2019.
A break above this level could lead to a rapid move up to $ 0.42 and the next closest resistance zone to a retracement of the last drop. On the other hand, the closest support area is at $ 0.115.
While the RSI and MACD are trending upwards, the Stochastic oscillator has shown a bearish trend, which raises doubts about the possibility of a breakout.
Splashes Cause Explosion
When we look at the status of XLM after the rejection on November 25 until December 9, we see that it continued to decline. However, XLM immediately bounced upwards, confirming the $ 0.151 level as support. This level of support is also the 0.5 Fib retracement level of the most recent upward move.
Despite the leap forward, the RSI appears to be bullish while the technical indicators appear to be unstable.
We could say that XLM signals that its fall is over and is starting to move up. Both RSI and MACD will support this possibility. If XLM continues its upward movement, it will find the first small area at $ 0.19.
As a result, the XLM price is expected to continue rising to $ 0.302 – $ 0.328. A close below the $ 0.15 support area could invalidate this possibility.