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HomeAltcoin NewsStellar Lumen (XLM) Price Could Recover But $0.06 Holds Key

Stellar Lumen (XLM) Price Could Recover But $0.06 Holds Key

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  • Stellar lumen price declined heavily and it broke the key $0.0630 support area against the US Dollar.
  • XLM price is currently testing the $0.0550 support and it could recover in the short term.
  • There is a major bearish trend line forming with resistance near $0.0595 on the 4-hours chart (data feed via Kraken).
  • The pair must climb above $0.0595 and $0.0600 to start a strong recovery in the near term.

Stellar lumen price is now trading in a bearish zone against the US Dollar and bitcoin. XLM price might tumble if it struggles to recover above the $0.0600 resistance area.

Stellar Lumen Price Analysis (XLM to USD)

In the past few days, there was a steady decline in stellar lumen price below the $0.0650 and $0.0620 against the US Dollar. The XLM/USD pair even broke the $0.0600 support area and the 55 simple moving average (4-hours).

The decline was such that the pair spiked below $0.0580 and tested the $0.0550 support area. A low is formed near $0.0549 and the price is currently consolidating losses. An initial resistance is near the $0.0592.

The 23.6% Fibonacci retracement level of the recent decline from the $0.0734 high to $0.0549 low is also near the $0.0594 level. Moreover, there is a major bearish trend line forming with resistance near $0.0595 on the 4-hours chart.

Therefore, the price must clear the $0.0595 and $0.0600 resistance levels to initiate a decent recovery in the near term. The next major resistance is also near the $0.0620 level and the 55 simple moving average (4-hours).

The 50% Fibonacci retracement level of the recent decline from the $0.0734 high to $0.0549 low is near the $0.0650 level to act as a key resistance. A successful close above the trend line, $0.0620, and the 55 SMA could open the doors for more gains in the near term.

The next major resistance is near the $0.0675 level. Conversely, the price could fail to recover above the $0.0600 resistance level. In the mentioned case, the price may perhaps resume its decline below the $0.0560 and $0.0550 levels.

Stellar Lumen Price
Stellar Lumen Price

The chart indicates that XLM price is facing a lot of hurdles on the upside near $0.0595 and $0.0600. If there is no upside break, the price could start another decline below the $0.0550 support area.

Technical Indicators

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

4 hours RSI – The RSI for XLM/USD is now recovering towards the 50 level.

Key Support Levels – $0.0560 and $0.0550.

Key Resistance Levels – $0.0695, $0.0600 and $0.0620.

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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