17 minutes ago | Michael Fasogbon
Key Highlights:
- XLM forms a double-top pattern after multiple rejections around $0.065.
- Bullish weakness may cause a short-term correction.
| ⠀Stellar price: | $0.062 |
|---|---|
| ⠀Key XLM resistance levels: | $0.075, $0.083, $0.088 |
| ⠀Key XLM support levels: | $0.055, $0.0512, $0.047 |
*Price at the time of writing
Stellar price long-term prediction: Bullish
After opening long for the year 2020, Stellar has seen growth over the past 20 days of trading. However, the bullish sentiment is weakening as momentum fades out. As we can see on the daily chart, XLM has encountered strong resistance around the $0.065 price level.
How to buy Stellar Lumens (XLM) on Binance?
For the past three days, the bulls have found it difficult to sustain momentum. This scenario may continue to play out if $0.065 resistance remains solid. The XLM price could locate support at $0.055 and $0.0512 on the grey regression line that was breached last week. A further drive could cause XLM to slip to $0.0047.
Despite leaving the long-term bear zone last week, the XLM market might face another important channel resistance at $0.075 when buying resumes. A clear cross above this channel would mean that resistances at $0.083 and $0.088 would come into play. Still, Stellar remains bullish on the technical indicators. A small correction may occur once the RSI and the MACD turn bearish.
Stellar price medium-term prediction: Bullish
Stellar is still maintaining an upward range on the 4-hour chart. The market has recently retested the $0.065 resistance, forming a double-top pattern. This bearish pattern shows that the buyers are exhausted as a correction could be underway. Meanwhile, the RSI indicator is already heading downward. We can see that the MACD is also following the course at the moment.
Currently, it’s important to keep in mind that a bearish play is lurking around the corner, but XLM is still relying on the grey diagonal support line. Once it breaks, the closest support to watch out for is at $0.059. A lower drive could send XLM straight to the blue horizontal support at $0.053. However, the yellow diagonal support is where XLM has the strongest chance of bouncing back to $0.65 before breaking higher.
Stellar price short-term prediction: Bullish
Looking at the bigger picture, the bulls are struggling to sustain the market above $0.060 on the hourly chart, but this bullish struggle may come to an end soon. We can see that Stellar is approaching the yellow rising line with a bearish setup. If XLM breaks beneath this yellow line, the coin’s recent bullish scenario could be invalidated. If XLM does break below, support is waiting at $0.059 and $0.052 – the blue horizontal zones on the chart.
Additionally, the XLM market is clearly turning bearish on the technical indicators. On the other hand, we should expect the unexpected! A freaky move may hit stop losses at $0.068 if the market spikes. From a technical perspective, however, XLM is now on the verge of a correction.
Conclusion
Stellar is set for a long-term bullish move but a major correction is necessary for healthy growth. XLM bulls will be looking to increase their positions at around $0.053 in anticipation of the next rally. For now, however, the sellers are around the corner. If the market continues to rally, $0.075 would be the next bullish target.
Previous XLM price analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of Stellar:
