Stellar Lumen is attempting to recover higher after over extending to the downside during the last weeks crypto market sell-off.
Stellar Lumen technical analysis continues to show that a strong upside recovery from current levels still remains possible.
Stellar Lumen medium-term price trend
Stellar Lumen is attempting to recover alongside the broader cryptocurrency after the XLM/USD pair found strong technical support from just below the $0.055000 level.
Stellar Lumen price analysis currently shows that a large inverted head-and-shoulders pattern on the daily time frame still remains valid.
The cryptocurrency broke past the 50 percent and 61.8 Fibonacci retracement levels of the 2019 low to the current 2020 high during last weeks decline.
As long as bulls continue to defend the $0.051000 level then the inverted head-and-shoulders pattern still has a high probability of playing out to the upside.
Watch out for the 50 percent Fibonacci retracement level, around the $0.065000, level to act as a major pivot point this week.
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 below the $0.062000 level.
A small inverted head-and-shoulders pattern may be forming across the lower time frames. A rally towards the 0.063000 level would confirm the pattern.
According to the size of the bullish reversal pattern, the cryptocurrency should advance towards the $0.072000 level, at a minimum.
It is worth noting the cryptocurrency also has rising trendline resistance around the $0.074000 level, which may also act as a bullish target.
Overall, watch out for a powerful recovery if price starts to trade above the $0.063000 resistance level.
Stellar Lumen technical summary
Stellar Lumen technical analysis suggests that a bullish recovery towards the $0.074000 level may occur if the $0.063000 level is breached.
