When we analyze the XLM chart, we can clearly see that the long-standing descending channel pattern has broken upward. The price of the coin has surged to the level at $0.4785 with a strong upward momentum following the breakout we saw in early July. It is sad to see that the price has begun to pull back to the upper border of the channel due to the profit-taking recently.
XLM Current Appearance
It is seen that the price is currently trading around $0.3648; however, the range around the levels at $0.3774 – $0.3909 started to act as resistance as the price could not hold above this zone. We have the first short-term support level at $0.3416 in case of a fall scenario. Below this level, the price could test $0.3093–$0.2980 if the fall continues. We see that this price zone coincides with both the horizontal support zone and the previous breakout zone, which technically stands as a strong defensive line.It is possible that the price will recover back to the range around the levels at $0.39–$0.42 if buyers re-enter the market here. We need to see the price close above $0.4267 for the uptrend to continue.In terms of the formation, following the breakout of the channel, a new structure seems to be forming. Thus, it is important that we follow whether XLM will enter a trend again or a symmetrical structure.Based on the formation, a new structure tends to form after a channel breakout. Therefore, it's important to carefully monitor whether the price will re-enter a trend or a symmetrical structure.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
