- XLM price is contained inside a descending triangle pattern on the 1-hour chart.
- The digital asset trades between two key levels that will determine its future.
- A massive bearish divergence has formed for XLM on the 3-day chart.
Stellar is trading at $0.50 at the time of writing between two key levels that will be critical for its short-term future.
XLM price shows different signs to investors
On the 1-hour chart, XLM price has formed a descending triangle pattern with its resistance trend line at $0.526 and its support at $0.473. The pattern can be drawn by connecting the lower highs with a trend line and the similar lows with a parallel line, both converging at the same point.
XLM/USD 1-hour chart
A 1-hour candlestick close above the upper boundary has a 23% price target, calculated using the initial height of the pattern. XLM price could quickly jump to $0.565, $0.62, and eventually $0.646.
However, on the 3-day chart, the Relative Strength Index (RSI) and the price have formed a significant bearish divergence as XLM price has posted higher highs while the RSI established lower highs.
XLM/USD 3-day chart
This bearish divergence is significant and favors the bears. A 1-hour candlestick close below the key support level at $0.472 will confirm a breakdown.
XLM/USD 1-hour chart
The breakdown of the descending triangle pattern has a price target of $0.366, which is also a 23% move.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.