- Stellar lumen price declined sharply after it failed to climb above the $0.1200 resistance against the US Dollar.
- XLM price tested the $0.1100 support area and it is currently consolidating losses.
- There is a key bearish trend line formed with resistance at $0.1142 on the 4-hours chart (data feed via Kraken).
- The pair is likely to break the trend line and $0.1150 resistance to start a fresh upward move.
Stellar Lumen Price Analysis (XLM to USD)
This past week, stellar lumen price climbed above the $0.1120 and $0.1150 resistance levels against the US Dollar. The XLM/USD pair even broke the $0.1180 resistance area before sellers protected the $0.1200 zone. A swing high was formed at $0.1198 before the price started a sharp decline. The price broke the $0.1150 and $0.1120 support levels. There was also a close below the $0.1140 level and the 55 simple moving average (4-hours). Besides, the price spiked below the $0.1100 support area and traded to a new weekly low at $0.1087.
Later, the price recovered above $0.1100 and it is currently consolidating losses. It tested the 23.6% Fibonacci retracement level of the last decline from the $0.1198 high to $0.1087 low. However, there are many hurdles on the upside near the $0.1140 and $0.1150 levels. There is also a key bearish trend line formed with resistance at $0.1142 on the 4-hours chart. The 50% Fibonacci retracement level of the last decline from the $0.1198 high to $0.1087 low is also near the $0.1153 level.
More importantly, the 55 simple moving average (4-hours) is positioned near the $0.1150 level. Therefore, a successful close above the $0.1140 level and the 55 simple moving average (4-hours) is must for a strong upward move in the near term. The next main resistance is at $0.1200, where sellers might attempt to prevent an upside break. On the downside, the main supports are near $0.1100 and $0.1085.
The chart indicates that XLM price is clearly trading near key supports at $0.1085. If there is a downside break below $0.1085, the price could accelerate losses towards the $0.1020 level. On the upside, a clear break above the $0.1142 level is likely to encourage buyers to take control.
4 hours MACD – The MACD for XLM/USD is slowly reducing its bearish slope, with positive signs.
4 hours RSI – The RSI for XLM/USD is currently recovering from the 35 level and it could test the 50 level.
Key Support Levels – $0.1100 and $0.1085.
Key Resistance Levels – $0.1142, $0.1150 and $0.1200.