Stellar price analysis: XLM trades in a wedge, price surge lurks around

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  • The XLM market is still looking bearish despite all indication for positive moves.
  • Stellar (XLM) is now lurking around for a surge after trading in a medium-term wedge formation

On August 11, Stellar’s price touched the $0.082 and later followed by a sharp bear turn that led to the current price drop. Meanwhile, the price is still moving in the wedge – a surge is expected to play out.

Following the ongoing bearish sentiment, the XLM/USD pair has continued to maintain a long-term downward trend. At the moment, the market is down by 2.04%. The price of Stellar will further drop as long as the selling pressure remains in the market. For now, the $0.070 is bolstering as support for the market.                 

Stellar (XLM)’s Current Statistics

Trading Price: $0.074

Market Capitalization: $1,445,910,779

Trading Volume: $69,286,245

Key Resistance Levels: $0.082, $0.085, $0.0898

Key Support Levels: $0.070, $0.068, $0.065

Stellar Price Analysis for August 14, 2019

Looking at the 4-hour chart, we can see that Stellar’s price action is still out on the five weeks bearish wedge which may set a breakout soon. The past three days, trading has brought revealing volatility in the market. With this moves, there’s a need to look out for the next possible move for the XLM/USD pair.

XLMUSD, 4H Price Chart – August 14, 2019

On the upside, the next level of resistance to watch out for lies at $0.082. Should the price further drives up, Stellar (XLM) may propel to immediate resistances at $0.085 and$0.098 levels – kick-starting a bull-run. On the downside, the token is near to the short-term support at $0.070. A significant drop below this support may cause new technical support at $0.068 and $0.065. On the long-term outlook, the market remains in a dominant bearish bias.

Conclusively:

Stellar (XLM) is at the verge of breaking out of the wedge. Since the actual direction is yet to be known, we should look out for the critical levels mentioned above before trading the breakout. But from a technical standpoint, there’s a higher chance for a rise than a fall – a bullish breakout is imminent.

Technical Indicator Reading

After rising to the 60 level on August 11, the RSI was rejected back to 35 level, where the price has currently found support. A further increase in Stellar (XLM) price will bring the indicator back in an upward direction.

At the moment, the Stochastic RSI is now on the downside. As buying pressure compounds, an upward move is expected.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Michael Fasogbon: Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.