A reversal pattern for Stellar [XLM] has these few implications

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Stellar’s [XLM] efforts to weaken the four-month trendline resistance (white, dashed) came to fruition as the bulls flipped it to support following their recent rally. The latest buying resurgence entailed a rising wedge structure, one that eyed to retest the $0.125-ceiling.

A compelling close above its present pattern would position it to invalidate the bearish inclinations. The bulls need to ramp up buying volumes to sustain their ongoing buying streak. At the time of writing, XLM was trading at $0.124, up by 3.36% in the last 24 hours.

Source: TradingView, XLM/USD

XLM’s previous downtrend chalked out the four-month trendline support (previous resistance) on the daily chart. However, after dropping down towards its 20-month low on 13 July, buyers have regained their momentum. 

As a result, the price action jumped above its near-term EMAs. Even so, the 20 EMA (red) was yet to bullishly cross above the 50 EMA (Cyan) and confirm a robust uptick in buying edge. Such a crossover could heighten the chances of a bearish invalidation.

Should the $0.12-resistance reignite the selling power, the alt could see a sluggish phase within the pattern. However, the morning star candlesticks could help the bulls maintain their advantage. A close beyond the $0.12-level would open a doorway for testing the $0.135-level.

However, a likely bearish revival at the $0.12-mark can delay near-term recovery prospects. Any close below the pattern could see a sluggish phase near the Point of Control (POC, red).

Source: TradingView, XLM/USD

The Relative Strength Index took a bullish stance, especially after flipping the