Stellar Price on the Rise – Can it Legitimately Reach $0.20?

• Last attempt to reach $0.20 failed, but we are currently seeing another 
• A rejection looks more likely, but it is yet to be seen 
• Breakout above $0.18 may lead the price to $0.24 
• If a rejection occurs, the price could fall back down to $0.11

A 45% increase was seen in the price of Stellar from July 17, when it was trading at $0.126. The price again reached levels seen in the July 13 spike at $0.18. 

This most recent rise is seen as the next attempt for the price to reach $0.20, but with some early signs of struggle, can it make it? 

XLM Price Analysis 

After experiencing an enormous surge of 100% on July 13, the price of XLM has been struggling to surpass its most significant horizontal resistance zone of around $0.20. 

This horizontal resistance zone was first established as support and a potential ending point of the 2018 correction. After a breakout to the downside, it served as a resistance in the accumulation stage throughout 2019-2020. 

A breakout above it signaled a bullish cycle in January 2021, and the price proceeded to revisit the all-time high level of $0.70 in April 2021. Since then, a similar pattern developed – at first serving as support, then the price broke to the downside, and we have seen a U shape bottom developing. 

The seen interaction with the resistance zone could mean that the price is set for a breakout to the upside, which would, in turn, signal the start of yet another bullish cycle. 

Can it Break Through? 

Looking at the 4-hour chart below, there are a few things worth pointing out. First is that the price of XLM barely entered the territory of the resistance zone as it only spiked into it on a wick of $0.196, while the candle close on July 13 was at $0.161. 

Second is that this 4-hour candle close on July 13 was on the 1.618 Fibonacci extension level of the wave 1, validating the wave 3. After the price retraced from $0.161 to $0.125 on July 17 for the wave 4, we saw another attempt to continue its upward trajectory, which made a proper interaction on the wave 5. 

Third, the length of the wave 1 is the same as the wave 5 at the moment, which usually happens if the wave 3 ends on the 1.618 Fibonacci extension level.

All of these points suggest that the increase might have ended today, July 20, but we still haven’t seen some negative signs in the form of the first lower high and big red candles suggesting a rejection at the $0.17. 

The RSI is still in the overbought area above 70%, and while MACD is suggesting an uptrend, on its histogram, we have seen a first light green candle that indicates diminishing momentum. 

So can the price enter the resistance territory and finally break it? It does not look possible at the moment, at least not in this wave. More likely, we are going to see a rejection that is going to set up the price for a higher-degree retracement before making another attempt. 

Conclusion 

The XLM price action still looks bullish. An interaction with the resistance zone is undergoing, and while a rejection looks more likely, a breakout could still occur.

 If the price manages to enter the territory of the upper range, the next target would be the upper outline of the resistance zone at $0.24. But if a rejection takes place, the price might fall back down to $0.11, where the previous resistance could serve as support. 

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.