Stellar Lumen has been under pressure over recent days, after the cryptocurrency recently found strong resistance from the $0.090000 level.
Stellar Lumen technical analysis shows that a huge inverted head and shoulders pattern is taking shape across the daily time frame.
Stellar Lumen medium-term price trend
Stellar Lumen is starting to perform a much-needed technical correction, after the XLM/USD pair traded to its highest level since November 2019 earlier this month.
Stellar Lumen price analysis shows that a huge inverted head-and-shoulders pattern is starting to form on the daily time frame.
The size of the inverted head-and-shoulders pattern indicates that the XLM/USD pair could rally towards the $0.014000 level over the weeks.
Looking at the daily time frame, it appears the recent pullback is helping to form a final right-hand shoulder to complete the pattern.
Traders should expect the correction to terminate around the $0.060000 to $0.055000 technical region.
Stellar Lumen short-term price trend
Stellar Lumen technical analysis over the short-term shows that the cryptocurrency has a bearish bias while the price trades above the $0.068500 level.
A large head-and-shoulders pattern has formed across the lower time frame, and currently implies that a deeper downside correction is coming.
According to the size of the bearish pattern, the cryptocurrency should fall towards the $0.050000 level, at a minimum.
It is worth noting the cryptocurrency has already shed around twenty-five percent of its value since peaking earlier this month.
Overall, a strong bearish catalyst would need to take place to cause the cryptocurrency to invalidate the current bullish trend.
Stellar Lumen technical summary
Stellar Lumen technical analysis suggests that a correction towards the $0.060000 to $0.055000 area may occur. This should create a great dip-buying opportunity for medium-term bulls.
