- Stellar lumen price declined sharply after it failed to clear the $0.0720 resistance against the US Dollar.
- XLM price tested the $0.0500 support level and settled well below the 55 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $0.0650 on the 4-hours chart (data feed via Kraken).
- The pair is likely to resume its decline if it fails to clear the $0.0660 and $0.0680 resistance levels.
Stellar lumen price is currently recovering from the $0.0500 support against the US Dollar, similar to bitcoin. XLM price must settle above $0.0680 to continue higher in the near term.
Stellar Lumen Price Analysis (XLM to USD)
In the past few days, stellar lumen price remained in a negative zone and broke the $0.0680 support against the US Dollar. The XLM/USD pair declined sharply below the $0.0600 support and the 55 simple moving average (4-hours).
It traded as low as $0.0500 before starting an upside correction. There was a strong recovery above the $0.0600 resistance level. The price even climbed above the 50% Fibonacci retracement level of the key drop from the $0.0725 high to $0.0500 low.
However, the price is currently facing a strong resistance near the $0.0650 level. There is also a key bearish trend line forming with resistance near $0.0650 on the 4-hours chart.
The trend line is close to the 61.8% Fibonacci retracement level of the key drop from the $0.0725 high to $0.0500 low. The next key resistance is near the $0.0680 level (the last major breakdown zone) and the 55 simple moving average (4-hours).
Therefore, stellar price must climb above the $0.0660 and $0.0680 resistance levels to continue higher in the near term. Any further gains could open the doors for a push towards the $0.0720 and $0.0750 level.
Conversely, the price is likely to resume its decline from the $0.0660 resistance. An initial support is near the $0.0620 level. The main support is near the $0.0600 level, below which the bears are likely to aim a test of the $0.0500 support.
The chart indicates that XLM price is clearly facing a major hurdle near $0.0660 and $0.0680. A clear break above the $0.0680 is needed for a sustained upward move in the coming sessions.
Technical Indicators
4 hours MACD – The MACD for XLM/USD is slowly gaining pace in the bullish zone.
4 hours RSI – The RSI for XLM/USD is still well below the 50 level.
Key Support Levels – $0.0620 and $0.0600.
Key Resistance Levels – $0.0650, $0.0660 and $0.0680.
