Stellar Lumens (XLM) has been in the spotlight the last few days for its big movements. The price has not reacted much to the recent relief rally but it appears to be all set for the next breakout. RSI conditions for Stellar Lumens (XLM) on the daily chart for XLM/USD above are favorable as the RSI level is just where it has been before the last breakout. The ROC indicator on the above chart shows that the price took 242 days to breakout during the previous cycle. This time, a period of 242 days comes down to September 02, 2018. This means that the breakout can be expected anywhere between late August and early September.
Stellar Lumens (XLM) has a pattern of trading in triangles before a breakout. The price is currently trading in a similar triangle as the one before the previous breakout. The price has failed to break the downtrend resistance so far but the further along it trades in the triangle, the easier it gets to break above it. EMAs for XLM/USD are trading very closely to one another which mean that the next move from here will be a quick and aggressive one. Stellar Lumens (XLM) already seems to have reached its bottom but will continue to trade further along the triangle until the altcoin rally begins.
Stellar (XLM) has traded well against Bitcoin (BTC) and has failed to break below the support line since the beginning of this correction. The price has now entered a falling wedge as can be seen on the XLM/BTC chart above. Stellar (XLM) has a pattern of trading in falling wedges against Bitcoin (BTC). The price first enters a giant falling wedge, which is then followed by a series of falling wedges that keep getting smaller as the correction draws to an end and the wild swings reduce.
An interesting observation with regards to Stellar (XLM) is the similarity between the AMA Wave between the period of consolidation before the last breakout and the period of consolidation before the upcoming breakout. As shown on the chart above, both prices ranges exhibit similar AMA wave patterns just before the beginning of a new cycle. The target for this pattern comes down to August 30, 2018 which corroborates our previous range of breakout for Stellar against the US Dollar between late August and early September.
Stellar (XLM) is an interesting project as it enables users to exchange values among themselves without the need for any intermediaries. The project is often seen as a rival to the third largest coin, Ripple but they actually do not have a lot in common. Stellar (XLM) focuses on peer to peer transactions whereas Ripple (XRP) focuses on cross border payments with the help of intermediaries like banks and financial institutions. It is clear though that in the ultimate shift towards decentralization, coins like Stellar (XLM) will be more useful and valuable than Ripple (XRP) but for now, its value depends on actual use cases and mass adoption.