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HomeAltcoin NewsStellar Lumen (XLM) Price Could Correct To $0.40, Upsides Capped

Stellar Lumen (XLM) Price Could Correct To $0.40, Upsides Capped

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  • Stellar lumen price failed to settle above $0.5500 and corrected lower against the US Dollar.
  • XLM price is now trading well below $0.5200 and the 55 simple moving average (4-hours).
  • There was a break below a major bullish trend line with support near $0.5000 on the 4-hours chart (data feed via Kraken).
  • The pair could continue to move down towards the $0.4400 and $0.4200 support levels.

Stellar lumen price is correcting gains below $0.5000 against the US Dollar, while bitcoin remains strong. XLM price is likely to drop $0.4000, where the bulls are likely to appear.

Stellar Lumen Price Analysis (XLM to USD)

After forming a high near $0.6075 level, stellar lumen price started a strong decline against the US Dollar. The XLM/USD pair broke the $0.5000 support level and the 55 simple moving average (4-hours).

It traded as low as $0.4257 before starting a fresh increase. It recovered above the $0.4800 and $0.5000 resistance levels. There was even a spike above the 50% Fibonacci retracement level of the downward move from the $0.6075 swing high to $0.4257 low.

However, the price struggled to clear the $0.5400 resistance. It remained below the 61.8% Fibonacci retracement level of the downward move from the $0.6075 swing high to $0.4257 low. There is also a key bearish trend line forming with resistance near $0.5200 on the 4-hours chart.

The price is currently declining and trading well below $0.5200. It broke the $0.5000 support level and the 55 simple moving average (4-hours). There was also a break below a major bullish trend line with support near $0.5000 on the same chart.

It seems like the price is likely to continue lower towards $0.4400 or $0.4320. Any more losses may possibly lead the price towards the main $0.4000 support zone.

On the upside, the price is facing resistance near the $0.5000 and $0.5200 levels. A clear break above the $0.5200 level could open the doors for a fresh increase towards the $0.6000 level.

Stellar Lumen (XLM) Price
Stellar Lumen (XLM) Price

The chart indicates that XLM price is clearly trading well below $0.5200 and the 55 simple moving average (4-hours). Overall, the price could continue to move down towards the $0.4400 and $0.4200 support levels.

Technical Indicators

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

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

Key Support Levels – $0.4320 and $0.4000.

Key Resistance Levels – $0.5000, $0.5200 and $0.5500.

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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