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HomeAltcoin NewsStellar Lumen (XLM) Price Could Extend Decline Before Fresh Rally

Stellar Lumen (XLM) Price Could Extend Decline Before Fresh Rally

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  • Stellar lumen price started a steady decline from the $0.1180 resistance zone against the US Dollar.
  • XLM price declined below the $0.1080 support level and the 55 simple moving average (4-hours).
  • There is a key declining channel forming with resistance near $0.1050 on the 4-hours chart (data feed via Kraken).
  • The pair could extend its decline towards the $0.0950 support before it might start a fresh increase.

Stellar lumen price is slowly moving lower below $0.1050 against the US Dollar, while bitcoin is stable. XLM price is likely to resume its upward move towards $0.1200 once the current correction is complete.

Stellar Lumen Price Analysis (XLM to USD)

This past week, stellar lumen price started a steady downward move from well above $0.1150 against the US Dollar. The XLM/USD pair broke the $0.1100 support level and settled below the 55 simple moving average (4-hours).

The downward move was such that the price traded below the $0.1050 support level. It traded as low as $0.0957 and the price is currently correcting higher. There was a break above the $0.0980 resistance.

There was a break above the 23.6% Fibonacci retracement level of the recent decline from the $0.1084 high to $0.0957 low. The price is currently facing a major hurdle near the $0.1020 level.

It seems like the 50% Fibonacci retracement level of the recent decline from the $0.1084 high to $0.0957 low is acting as a major resistance for the bulls. The first major hurdle is seen near the $0.1050 level or the 55 simple moving average (4-hours).

There is also a key declining channel forming with resistance near $0.1050 on the 4-hours chart. If there is a break above the channel resistance and the 55 SMA, the price could start a fresh increase above the $0.1080 resistance zone.

The next major resistance is near the $0.1120 level, above which the price might continue to rise towards the $0.1200 barrier. Conversely, there is a risk of a downside correction below the $0.1000 level. The main support on the downside is near the $0.0950 level, where the bulls are likely to take a stand.

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

The chart indicates that XLM price is clearly declining steadily below $0.1050. Therefore, the price could extend its decline towards the $0.0950 support before it might start a fresh increase.

Technical Indicators

4 hours MACD – The MACD for XLM/USD is slowly losing pace in the bullish zone.

4 hours RSI – The RSI for XLM/USD is still below the 50 level, but with a flat structure.

Key Support Levels – $0.1000 and $0.0950.

Key Resistance Levels – $0.1020, $0.1050 and $0.1120.

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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