Stellar (XLM) is forming a symmetrical triangle, signaling a possible 16% price movement. Support and resistance levels are crucial for determining the next direction.
Symmetrical Triangle Signals
Crypto analyst Ali Martinez pointed out that Stellar (XLM) is poised for a 16% price movement. Price is compressing inside converging trendlines, developing a symmetrical triangle. Symmetrical triangles tend to be broken, with the break direction dictated by market mood. A distinct break beyond significant levels will indicate the dominance of buyers or sellers.
Fibonacci Levels and Market Structure
The analysis also uses Auto Fibonacci retracement levels, which point out essential support as well as resistance levels from the history of XLM. Current support level is the 0.618 Fibonacci level at $0.2903. A drop through the level can have the coin continue falling, with the next support level at $0.1959.
Momentum Indicators and Possible Scenarios
Stochastic RSI levels indicate being oversold at 2.78 (blue) and 11.47 (orange). Ali also indicated the possibility of a bullish reversal when the blue line crosses the orange line as the momentum changes. If XLM maintains $0.2903 support, the traders can look for a potential uptrend. A loss of this level can have the coin continue the downtrend.
The situation around Stellar (XLM) continues to develop, with traders closely watching support and resistance levels to determine the cryptocurrency's next movement.
