- Stellar lumen price gained momentum recently and rallied above $0.1000 against the US Dollar.
- XLM price even traded above the $0.1100 level before starting a downside correction.
- There was a break below a short term contracting triangle with support at $0.1080 on the 4-hours chart (data feed via Kraken).
- The pair is likely to decline towards the $0.1040 or $0.1020 support before a fresh upward move.
Stellar lumen price rallied this past week against the US Dollar, bitcoin and Ethereum. XLM price is currently correcting lower, but dips remain supported near $0.1020.
Stellar Lumen Price Analysis (XLM to USD)
In the last analysis, we discussed that stellar lumen price is placed in an uptrend and it is likely to extend gains above the $0.1050 and $0.1080 resistance levels against the US Dollar. The XLM/USD pair did gain traction and broke the $0.1050 and $0.1080 resistance levels. It even settled above the $0.1050 level and the 55 simple moving average (4-hours). Finally, there was a break above the $0.1100 level and the price traded to a new monthly high at $0.1132 before starting a downside correction.
It broke the $0.1100 level and the 23.6% Fibonacci retracement level of the last wave from the $0.0954 low to $0.1132 high. Besides, there was a break below a short term contracting triangle with support at $0.1080 on the 4-hours chart. It seems like the price may decline further below the $0.1060 level. The next key support is near the $0.1044 level. It represents the 50% Fibonacci retracement level of the last wave from the $0.0954 low to $0.1132 high.
However, the main support is near the $0.1020 level and the 55 simple moving average (4-hours). More importantly, the 61.8% Fibonacci retracement level of the last wave from the $0.0954 low to $0.1132 high is also near the $0.1020 support. Therefore, if the price continues to move down, there could be a strong buying interest near $0.1040 or $0.1020. On the upside, an initial resistance is near $0.1100, above which the price may rise towards the $0.1132 high.
The chart indicates that XLM price is currently correcting lower, but there are many supports on the downside above $0.1020. In the short term, there could be range moves above $0.1020 before the price forms a fresh base for the next move. On the upside, a clear break above $0.1100 may even increase chances of a fresh high above $0.1132.
Technical Indicators
4 hours MACD – The MACD for XLM/USD is slowly losing momentum in the bullish zone.
4 hours RSI – The RSI for XLM/USD corrected lower recently and it tested the 50 level.
Key Support Levels – $0.1044 and $0.1020
Key Resistance Levels – $0.1100, $0.1120 and $0.1132.