HomeAltcoin NewsStellar Lumen (XLM) Price Back To Square One, Can $0.06 Hold?

Stellar Lumen (XLM) Price Back To Square One, Can $0.06 Hold?

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  • Stellar lumen price rallied this past week above the $0.0800 resistance area against the US Dollar.
  • XLM price even broke the $0.0900 level and recently started a nasty decline below $0.0800.
  • There is a declining channel forming with resistance near $0.0680 on the 4-hours chart (data feed via Kraken).
  • The pair remains at a risk of more losses and it could even revisit the $0.0570 support area.

Stellar lumen price is back in a bearish zone after a massive rally against the US Dollar. XLM price might even struggle to bounce back from the $0.0600 support area.

Stellar Lumen Price Analysis (XLM to USD)

This past week, there was a sharp rise in stellar lumen price above the $0.0600 resistance against the US Dollar. The XLM/USD pair surged more than 25% and broke many resistances near $0.0700 and $0.0800. Moreover, there was a break above the $0.0850 level and the 55 simple moving average (4-hours). Finally, the price traded to a new monthly high at $0.0962 and recently started a fresh decline.

The bears took control and pushed the price below the $0.0800 level. Moreover, there was a break below the 50% Fibonacci retracement level of the last major wave from the $0.0573 low to $0.0962 high. It opened the doors for more downsides below the $0.0700 level and the 55 simple moving average (4-hours). The price is now trading below the $0.0680 level, plus the 76.4% Fibonacci retracement level of the last major wave from the $0.0573 low to $0.0962 high.

If there are more downsides, the price could test the main $0.0600 support area. If the bears remain in action, there are chances of stellar price dropping to $0.0570. Any further losses might call for a push towards the $0.0550 support area.

Conversely, if the price holds the $0.0600 support area, it could bounce back. It seems like there is a declining channel forming with resistance near $0.0680 on the 4-hours chart. If there is a successful close above the $0.0680 and $0.0700 resistance levels, the price could start a fresh increase towards $0.0800 and $0.0820.

Stellar Lumen Price Analysis (XLM to USD)

The chart indicates that XLM price is clearly back in a bearish zone below $0.0700. Therefore, there is a risk of more downsides below $0.0650 and $0.0620 in the near term. Only a close above the $0.0700 level might push the price back into a positive zone. The next key resistances are near $0.0750 and $0.0765.

Technical Indicators

4 hours MACD – The MACD for XLM/USD is currently gaining pace in the bearish zone.

4 hours RSI – The RSI for XLM/USD is currently well below the 50 level.

Key Support Levels – $0.0650 and $0.0600.

Key Resistance Levels – $0.0680, $0.0700 and $0.0750.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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