Hi friends hope you are well, and welcome to the new update on XLM.
Daily wedge breakout:
Stellar (XLM) has recently experienced a daily wedge breakout, as observed from July 13, 2023, to October 21, 2023. Despite this breakout, the cryptocurrency has faced challenges breaking the long-term resistance at $0.14. The current price action indicates that XLM is fluctuating between two significant levels, with a resistance at $0.14 and a support at $0.1180. The projected target for this breakout is around $0.20, which aligns with the top of the wedge.
Weekly wedge breakout and a key resistance:
On a weekly timeframe, Stellar broke out from a substantial falling wedge pattern in January 2023 and forming higher lows, and later attempted to break out from an up-channel in July 2023. However, it faced rejection at the long-term resistance of 20 cents. Currently, XLM is testing the support of this up channel. The suggestion is that with the daily wedge breakout already in play, there might be an attempt to break the key resistance at 20 cents on the weekly chart to sustain the rally.
Conclusion:
In conclusion, the daily and weekly analyses suggest a complex scenario for Stellar, with attention on key resistance levels at $0.14 and 20 cents. The success in breaking these resistance levels could influence the continuation of the rally, while the support at $0.1180 is crucial to monitor for potential downside movements.