The price of Stellar (XLM) fell sharply last week but bounced back on August 17. This created a long bottom wick and resulted in a 25 percent increase. The bounce confirmed the $0.105 area, which is crucial for determining the direction of the future trend.

Stellar crash ended with a splash!
XLM price analysis on a weekly timeframe shows that the price broke out of a 616-day resistance line in January. Breakouts from such long-term structures indicate the completion of the previous correction. Thus, a new movement in the other direction is expected to begin.
Although initially struggling to break above the $0.105 level, XLM debuted in July and hit a yearly high of $0.195. However, Stellar Lumens has since been dropped. It bounced off last week creating a long lower wick and returned to the $0.105 area.
The wick is considered a sign of buying pressure and also serves to confirm the $0.105 area as support. XLM has recovered better than the rest of the crypto market, which has experienced significant short-term losses.
If the bounce continues, the next resistance will be at $0.23, 87 percent above the current price. On the other hand, a break from the $0.105 zone could result in a 41 percent drop to yearly lows around $0.080.
The Weekly Relative Strength Index (RSI) is uncertain. Traders use the RSI as a momentum indicator to assess whether a market is overbought and to determine whether an asset should be accumulated or sold.
If the RSI is above 50 and the trend is up, the bulls still have the advantage, but if the value is below 50, the opposite is true. While the RSI is falling, it is still above 50. These contradictory signs fail to confirm the direction of the trend.
Stellar price prediction: Recover or reject?
Daily time frame analysis presents an uncertain outlook. The price dropped below a descending resistance line since July 13, hitting $0.105 on August 17. However, the price bounced later, confirming the small horizontal area of $0.110 as support.
Despite the bounce, XLM failed to break out of the descending resistance line. Rather, it was rejected by the line and the horizontal resistance area of $0.130 (red icon). A break from the line is needed to confirm the uptrend due to this combination of resistance levels.
The daily RSI provides conflicting readings. The indicator is rising but below 50 and below a descending resistance line. So similar to price action, whether the RSI is broken or rejected will be crucial in determining the future trend.
As a result, the Stellar XLM price prediction will determine whether the price has broken out of the resistance line or continues to be rejected. On the breakout, there is likely a 30% increase to the $0.160 resistance, while on the rejection, a 12% drop to $0.110 would occur.
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