Stellar (XLM) Price Analysis – April 13
Despite the last week surge in volatility, XLMBTC solidly followed and continued trading within a channel range since March 19. XLMUSD appeared to be constructing a Head and Shoulder pattern after the April 2 price increase. However, Stellar markets follow a bearish sentiment.
Resistance levels: $0.125, $0.135,
Support levels: $0.11, $0.1
The value of Stellar has been relatively low after the early April price increase which throws the market at $0.135 high. Creating a left Shoulder after a retrace to $0.0115 low, XLM climbs to $.0135 before dropping to $0.113 forming a Head yesterday.
A bounce up is expected at $0.125 resistance before a rejection to $0.11 support level, forming a right Shoulder to completing a Head and Shoulder (H&S) pattern. The bearish scenario is quite dominant on the 4-hours RSI; now closing the oversold territory.
If a bullish surge surpasses the right shoulder at $0.125 resistance, the next target for the buyers lies at $0.135 resistance level. In the opposite scenario, a break on the neckline could send XLM into more significant bearish condition. The bear, however, would locate quick support at $0.1 level.
For the past three weeks, XLMBTC had been following a falling channel formation with a strong bearish dominance after posting the 2019 high near 3000SAT. The slope rally is much revealing on the 4-hours RSI. Having touched the lower channel, a rebound is more likely to test 2400SAT resistance level any moment from now.
While Stellar market followed a bearish sentiment, the next downward rally is likely to bottom near the February 2018 reversal point at 2000 SAT support area. If such a scenario occurs, a strong demand force may reverse the trend again. A buying pressure could hit the next resistance level and above the channel; kick-starting a bull-run.
From the RSI signal, the sellers are nearly exhausted. The buyers seem prepared for the next upward move. At the moment, Stellar is still respecting the falling channel.
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