Stellar Lumen (XLM) Price Could Nosedive Below The 55 SMA

Stellar lumen price is struggling to gain pace against the US Dollar, similar to bitcoin. XLM price must stay above the 55 SMA to continue higher above $0.0850.

Stellar Lumen Price Analysis (XLM to USD)

After a strong decline, stellar lumen price found support near the $0.0720 level against the US Dollar. The XLM/USD pair traded as low as $0.0722 and recently started an upside correction.

There was a break above the $0.0800 resistance zone. However, the price failed to gain pace above the $0.0850 resistance zone. A high was formed near $0.0847 and the price started a fresh decline. There was break below the $0.0820 support.

Stellar declined below the 23.6% Fibonacci retracement level of the upward move from the $0.0722 low to $0.0847 high. The price is now trading near the $0.0800 level and the 55 simple moving average (4-hours).

It seems like there is a major ascending channel forming with support near $0.0790 on the 4-hours chart. The channel support is close to the 50% Fibonacci retracement level of the upward move from the $0.0722 low to $0.0847 high.

If there is a downside break below the channel support, the 55 simple moving average (4-hours), and the $0.0785 level, there is a risk of a fresh decline. In the stated case, the price could revisit the $0.0720 support. Any further losses could lead it towards $0.0700.

Conversely, the price might recover above $0.0820. The main resistance is near the $0.0850 level. A successful break above the $0.0850 resistance could open the doors for a strong increase. The next key resistance is seen near the $0.0900 level.

Stellar Lumen Price

The chart indicates that XLM price clearly started a steady recovery wave from the $0.0722 low. At the outset, the price could either nosedive below the 55 SMA or it might rise further above the $0.0850 hurdle.

Technical Indicators

4 hours MACD – The MACD for XLM/USD is struggling to move back into the bullish zone.

4 hours RSI – The RSI for XLM/USD is currently declining and it is just above the 40 level.

Key Support Levels – $0.0785 and $0.0720.

Key Resistance Levels – $0.0820, $0.0855 and $0.0900.

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