- Stellar lumen price started a fresh decline after it failed to clear $0.0735 against the US Dollar.
- XLM price is now trading well below $0.0700 and the 55 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $0.0688 on the 4-hours chart (data feed via Kraken).
- The pair could continue to move down towards the $0.0605 and $0.0600 support levels.
Stellar lumen price is trading in a bearish zone against the US Dollar, similar to bitcoin. XLM price could dive significantly if it fails to stay above the $0.0605 support.
Stellar Lumen Price Analysis (XLM to USD)
This past week, stellar lumen price climbed above the $0.0680 and $0.0700 resistance levels against the US Dollar. However, the XLM/USD pair failed to continue higher above the $0.0720 and $0.0735 resistance level.
The bulls failed to gain traction, resulting in a bearish reaction below the $0.0700 level. The price broke the $0.0680 support level and the 55 simple moving average (4-hours).
The recent decline was such that the price even spiked below the $0.0650 level. It traded as low as $0.0635 and it is currently correcting higher. An initial resistance is near the $0.0655 level.
The first major resistance is seen near the $0.0680 level and the 55 simple moving average (4-hours). It is close to the 50% Fibonacci retracement level of the recent decline from the $0.0720 high to $0.0635 low.
The main resistance is now near $0.0690 and $0.0700. There is also a key bearish trend line forming with resistance near $0.0688 on the 4-hours chart. The trend line coincides with the 61.8% Fibonacci retracement level of the recent decline from the $0.0720 high to $0.0635 low.
If there is an upside break above the trend line resistance and $0.0700, the price is likely to continue higher. The next major resistance is near the $0.0735 level, above which the bulls are likely to take over.
Conversely, the price is likely to continue lower towards the $0.0615 and $0.0605 support levels. Any further losses may perhaps spark a significant decline towards the $0.0500 level in the near term.
The chart indicates that XLM price is clearing facing an uphill task near the $0.0680 and $0.0700 levels. Having said that, the price is likely to find a strong buying interest near the $0.0605 level.
Technical Indicators
4 hours MACD – The MACD for XLM/USD is currently gaining pace in the bearish zone.
4 hours RSI – The RSI for XLM/USD is currently well below the 50 level.
Key Support Levels – $0.0615 and $0.0605.
Key Resistance Levels – $0.0680, $0.0700 and $0.0735.
