How to Prepare for Stellar (XLM) Price Next Leg Down
The Stellar (XLM) price is trading inside a short-term symmetrical triangle. Due to the preceding price action, a breakdown is the most likely scenario.
Stellar (XLM) price has decreased below a descending resistance line since May 10. The line caused four rejections so far (red icons), most recently on Oct. 9.
On Nov. 8, XLM fell sharply, breaking down from the $0.1 horizontal support area in the process. The breakdown was seen in the rest of the crypto market and led to a low of $0.079 the next day. The breakdown caused the RSI to reach its second-lowest-ever value at 24 (red circle).
The indicator has been moving upwards since. However, it has not generated any bullish divergence or moved above 50.
As a result, the XLM price prediction is considered bearish until the price reclaims the $0.1 area. Failure to do so would not bode well for the future price.
XLM Price Breakdown Incoming?
The price chart from the six-hour time frame is also bearish. The Stellar price is trading inside a symmetrical triangle since Nov. 9. While the symmetrical triangle ins considered a neutral pattern, it is transpiring after a downward movement. As a result, a breakdown from it would be the most likely scenario. The sub-wave count inside the triangle is given in black.
Measuring the triangle’s height and projecting it to the breakdown level gives a price target of $0.068.
Conversely, increasing above the wave C high of $0.091 (red line) would invalidate this bearish XLM price prediction.
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