The Stellar (XLM) price is giving conflicting readings in different time frames. The resolution of its short-term pattern could determine the direction of the future trend.
The XLM price has fallen since reaching an all-time high of $0.798 in May 2021. Since Sept. of the same year (red circle), it has fallen underneath a descending resistance line. The downward movement has led to a low of $0.098 in Sept. 2022.
Throughout this decrease, XLM also broke down from the $0.135 horizontal area (red icon). This is a crucial horizontal level since it has intermittently acted as both resistance and support (green icon) since May 2019. The area is expected to act as resistance once more and coincides with the aforementioned descending resistance line.
As a result, a XLM price breakout above it is required in order for the trend to be considered bullish.
The weekly RSI supports this possibility since it has generated bullish divergence…
