Stellar (XLM) price has been on a downward trend since July, reaching a low of $0.105 in August. The price has failed to sustain a breakout from a descending resistance line and is facing a strong resistance at $0.130. The technical indicators are mixed, suggesting that the price could go either way. Meanwhile, the FTX liquidation plan could have an impact on the crypto market, depending on the assets that will be sold.
Weekly Chart Shows Bullish RSI
The weekly chart shows that the Stellar price has fallen from its yearly high of $0.195 in July to a low of $0.105 in August, validating the $0.105 horizontal area as support.
The price bounced back slightly but has not been able to reclaim the $0.130 level as resistance.
However, the RSI indicator is still bullish, as it moved above 50 in June and has been validating it as support since then.
This suggests that the bulls still have an advantage over the bears and that the price could resume its upward movement if it breaks above the $0.130 level.
The next resistance level is at $0.235, which is roughly 100% above the current price. This level coincides with the 0.618 Fib retracement level of the entire downward movement.
It is worth mentioning that a court has approved the FTX liquidation plan for various crypto assets. FTX is a collapsed crypto exchange that owes its creditors almost $3.1 billion.
The liquidation plan calls for FTX to sell its crypto assets in blocks of $50 million to $100 million per week under the supervision of Galaxy Digital.
FTX has not reported that it will liquidate any XLM tokens, but the liquidation plan could have an impact on the crypto market as a whole, depending on the assets that will be sold and the market conditions.
Daily Chart Shows Failed Breakout
The daily chart shows that the Stellar price broke out from a descending resistance line on September 4, which was expected to lead to a significant price increase.
However, this was not the case, as the price failed to reclaim the $0.130 horizontal area and was rejected by it.
The RSI indicator is also bearish, as it has fallen below 50 and is trending downwards.
This suggests that the bears have gained control over the price action and that the price could drop further if it breaks below the $0.105 support level.
The next support level is at $0.075, which is roughly 30% below the current price. This level coincides with the 0.786 Fib retracement level of the entire upward movement.
Therefore, the XLM price prediction is still undetermined, as it depends on whether it can break above or below the $0.130 and $0.105 levels, respectively.
An increase to the $0.130 resistance area will amount to an upward movement of 10%, while a drop to the $0.105 area will be a decrease of 9%.
Conclusion
Stellar (XLM) price has been in a downtrend since July, reaching a low of $0.105 in August.
The price has failed to sustain a breakout from a descending resistance line and is facing a strong resistance at $0.130. The technical indicators are mixed, suggesting that the price could go either way.
Meanwhile, the FTX liquidation plan could have an impact on the crypto market, depending on the assets that will be sold and the market conditions.
Stellar investors should keep an eye on these key levels and watch for any signs of reversal or continuation.
For Coinscreed’s latest crypto market analysis, click here.
