Stellar (XLM) Technical Analysis: New 2019 Roadmap Now Live, is $10 Back in Sight?

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The Stellar Organisation has just released their new 2019 roadmap, which includes a detailed list of planned upgrades to their Stellar Core software, Horizon API, content strategy and developer tools. The response from the Stellar twitter community has been highly positive and many are hoping that the new roadmap update will encourage bullish traders to get back behind XLM.

For the past month, Stellar Lumens has started to show some pushback against its quickly declining price action but so far it has been unsuccessful in breaking back over $0.10. The most likely reason for this is that Stellar’s main competition, Ripple (XRP), has been making significant strides towards mainstream adoption and securing important partnerships over the last several months. Not only was XRP recently made the base trading pair on Binance, but New Zealand-based crypto exchange, Stronghold, has just come out and announced that it will dropping XLM trading pairs in favour or new XRP pairs. 

At the moment XLM is beginning to break away from the minor red market that seems to be gripping a vast majority of altcoins at the time of writing; up 0.20% against the US dollar and up a modest 0.27% against BTC. Will the new 2019 direction be enough to attract buyers back into the XLM markets, or will XRP continue to edge ahead in the race to become the leading cross-border payment solution?

On the 1D XLM/USD chart the asset appears to be consolidating inside a bullish ascending triangle pattern, between an uptrending support line and the $0.096 resistance.

Despite the new roadmap announcement, traders still seem to be wary of the short-term prospects of XLM as shown by the decreasing intraday volatility and trading volume.

If this pattern continues playing out, we should expect to see the asset springboard off the strong uptrending support - as it has done 3 times already over the last 3 weeks - and continue consolidating. If however, confidence begins to depart from the asset and the price action falls through the current support then XLM could head towards a new year-low.

Looking at a number of indicators over 4hr candles, we can see that some early signs of bullish momentum starting to pick up:

  • The 12MA is starting to bifurcate away from the 26MA on the MACD indicator.
  • The indicator line on the Chaikin Money Flow indicator is starting to spike upward as buying pressure starts to increase.
  • Indicator dots on the Parabolic SAR indicator have just started to appear beneath the price action which usually signals a trend reversal.
  • The Aroon Up line has also recently converged above the Aroon Down line.

Stellar (XLM) Price Targets

All ROIs are calculated from the asset’s current value of $0.086 (AToW).

PT1: $0.089 (3.49%)
PT2: $0.094 (9.30%)
PT3: $0.096 (11.63%)

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