On July 8, 2019, the Stellar price reached a high of 929 satoshis. A rapid decrease ensued. On July 10, it reached a low of 748 satoshis. It has been increasing since. On July 18, it briefly reached highs above 950 satoshis before decreasing sharply.

Will the XLM price reach highs above 1000 satoshis or will it break down? Keep reading below in order to find out.

For our previous analysis, click here.

If you would like to trade cryptocurrencies with a multiplier of up to 100x on our partner exchange, follow this link to register for free on StormGain.

XLM Price: Trends and Highlights for July 22

XLM/BTC broke out from an ascending triangle.

It is trading inside a long-term descending wedge.

A bullish divergence has developed in the RSI & MACD.

XLM is trading above the daily moving averages.

There is resistance near 1250 satoshis.

Previous XLM Price Movement

Since reaching a low on July 10, XLM has been trading inside an ascending triangle.

On July 18, the XLM price broke out from this ascending triangle.

The breakout occurred with significant volume. However, the ensuing decrease likewise occurred with noteworthy volume.

Since then, the price has been decreasing and has validated the previous resistance line as support.

Descending Wedge

A look at a longer-term time-frame shows that the XLM price has been trading inside a descending wedge since the end of February.

The descending wedge is considered a bullish pattern, making price breakouts more likely.

An interesting observation from the movement inside the wedge has been the two breakout attempts.

The first one occurred on May 14. The XLM price initiated an upward move with massive volume, before reaching the resistance line and decreasing.

The second one occurred on July 17. While its volume pales in comparison to the one on May 14, it was significantly higher in volume on days in its close proximity.

Therefore, the fact that these movements are transpiring inside a bullish pattern makes us believe that the price will soon break out.

Furthermore, the fact that the price is currently trading inside a significant support area makes it a suitable place for the beginning of a reversal.

Let’s take a look at some technical indicators to see if that is likely.

Technical Indicators

The XLM price is analyzed alongside the RSI & MACD in the first graph and the 10- and 20-day moving averages in the second

A look at the MACD and RSI suggests that the XLM price will soon begin an upward move.

A very significant bullish divergence has developed in both indicators.

In the case of the RSI, there is both a long- and short-term divergence developing within the same time-frame.

If the XLM price follows the ascending support line from the triangle in the first section, it is likely to reach the resistance line of the wedge on July 26.

An analysis of moving averages supports this claim.

The recent upward movement took the price above both MAs.

Furthermore, they are very close to making a bullish cross.

The cross will serve as confirmation that an uptrend has begun.

Reversal Areas

In case the XLM price begins an upward move, one resistance area is outlined below:

It is found near 1250 satoshis.

We believe that the price will eventually reach this area.

Summary

The XLM price is trading inside a long-term descending wedge.

According to our analysis, it is likely to break out and reach the resistance area outlined above.

Do you believe the XLM price will break out from the wedge? Let us know in the comments below.