HomeAltcoin NewsStellar Lumen (XLM) Price Remains At Risk Of Larger Breakdown

Stellar Lumen (XLM) Price Remains At Risk Of Larger Breakdown

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  • Stellar lumen price is trading in a downtrend below the $0.0650 resistance against the US Dollar.
  • XLM price could accelerate decline if it breaks the $0.0600 support area in the near term.
  • There is a key bearish trend line forming with resistance near $0.0630 on the 4-hours chart (data feed via Kraken).
  • The pair could only recover if it breaks the $0.0630 and $0.0655 resistance levels.

Stellar lumen price is facing many resistances near $0.0650 against the US Dollar. XLM price remains at a risk of a significant decline if it breaks the $0.0600 support area.

Stellar Lumen Price Analysis (XLM to USD)

This past week, stellar lumen price started a major decline from the $0.0720 resistance against the US Dollar. The XLM/USD pair broke many supports on the way down such as $0.0680 and $0.0650. Moreover, there was a close below the $0.0650 pivot level and the 55 simple moving average (4-hours). It opened the doors for more downsides below the $0.0630 level.

The price traded to a new monthly low at $0.0604 and it is currently consolidating losses. An immediate resistance is near the $0.0630 level. Additionally, the 23.6% Fibonacci retracement level of the recent decline from the $0.0720 high to $0.0604 low is also near the $0.0631 level. More importantly, there is a key bearish trend line forming with resistance near $0.0630 on the 4-hours chart.

If there is an upside break above the trend line, the price could test the main $0.0655 resistance area. The 55 simple moving average (4-hours) is also near the $0.0655 level. Moreover, the 50% Fibonacci retracement level of the recent decline from the $0.0720 high to $0.0604 low is waiting near the $0.0662 level to act as a strong resistance in the coming sessions.

If the price fails to climb above the $0.0630 or $0.0655 resistance levels, it could continue to move down. The main support on the downside is near the $0.0600 level. If there is a downside break below the $0.0600 support, the price is likely to accelerate its decline towards the $0.0550 support area.

Stellar Lumen Price Analysis (XLM to USD)

The chart indicates that XLM price is clearly trading in a downtrend and it could decline further if it breaks the $0.0600 support area in the near term. Conversely, the price must settle above $0.0630 and $0.0655 to start a solid recovery in the coming days. The next major resistance above $0.0655 is near the $0.0720 level.

Technical Indicators

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

4 hours RSI – The RSI for XLM/USD is currently just above the 40 level.

Key Support Levels – $0.0600 and $0.0550.

Key Resistance Levels – $0.0630, $0.0655 and $0.0720.

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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