Stellar (XLM) price is creating a bullish pattern in the weekly time frame after the RSI generated bullish divergence. However, a short-term price retracement could occur prior to this long-term reversal.
XLM price has been falling since reaching a high of $0.798 in May 2021. The price created a lower high (red icon) in Nov. of the same year and started to fall underneath a descending resistance line afterward. This movement then led to a low of $0.099 in July 2022.
Stellar price then reversed trend and broke out from the descending resistance line. Additionally, while the price returned to pre breakout levels, the weekly RSI generated a considerable bullish divergence (green line).
Such divergences often precede significant upward movements, and one has yet to occur. If it does, the next closest resistance would be at $0.235.
Moreover, the weekly RSI has moved above the high between the divergences (white dashed line), further vindicating the possibilit
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