HomeNewsStellar Lumen Faces Crucial Test: Key Supports Threatened as Bears Loom

Stellar Lumen Faces Crucial Test: Key Supports Threatened as Bears Loom

- Advertisement -
  • Stellar Lumen (XLM) is struggling below the critical support level of $0.132 against the US Dollar, trading close to $0.125.
  • Key technical indicators suggest a bearish momentum, with XLM at risk of declining further below the $0.1245 support zone.

Stellar Lumen’s Precarious Position in the Crypto Market

In recent trading sessions, Stellar Lumen (XLM), a prominent digital currency, has faced a challenging situation, failing to maintain its position above the crucial $0.132 support level against the US Dollar. This development places XLM in a potentially vulnerable state, with a risk of further declines.

Technical Analysis: Bearish Signals Emerge

Stellar Lumen’s price trajectory has encountered significant resistance, particularly at the $0.1380 level, leading to a downward movement. The inability to sustain an upward trend has resulted in a decline below both the $0.1350 and $0.1320 levels. Notably, the currency breached the 50% Fib retracement level of its recent rally from the $0.1146 low to the $0.1382 high, indicating a shift in market sentiment.

At present, XLM is trading just above the $0.125 mark, hovering near the 55 simple moving average (4 hours). A key bullish trend line has been identified, with support around $0.1245 on the 4-hour chart. The currency’s immediate future hinges on whether it can hold this support line.

Crucial Support and Resistance Levels

The primary resistance for XLM now lies near the $0.1300 mark, followed by a more significant barrier at $0.1320. A successful breach above this region could propel the currency towards the $0.1350 level, with further potential gains extending to $0.140. Conversely, failure to ascend past these resistances may lead to continued bearish pressure.

The initial support is established around the $0.1245 level, aligning with the 61.8% Fib retracement level. Should XLM break below this threshold, the next major support is at $0.1200, with a potential decline extending to the $0.1145 level, and possibly even retesting the $0.1120 level in the near term.

Technical Indicators Outlook

The 4-hour MACD for XLM/USD is exhibiting increased momentum in the bearish zone, while the RSI has dipped below the 50 level. These indicators reinforce the bearish outlook, pointing to potential challenges ahead for Stellar Lumen.

The current technical landscape for Stellar Lumen suggests a period of uncertainty, with bearish trends gaining strength. The cryptocurrency’s ability to withstand these pressures and maintain key support levels will be crucial in determining its short-term trajectory in the volatile digital asset market.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628