HomeNewsStellar Lumen (XLM) Faces Downside Pressure Below Crucial Support Level

Stellar Lumen (XLM) Faces Downside Pressure Below Crucial Support Level

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  • Stellar Lumen (XLM) struggles to overcome the $0.1260 resistance, leading to a fresh decline.
  • XLM is now trading below $0.1180 and the 55 simple moving average (4 hours), with the potential to extend losses below $0.1120.

Stellar Lumen Price Analysis (XLM to USD)

Stellar Lumen (XLM) has faced resistance in its attempt to breach the $0.1260 level against the US Dollar. The XLM/USD pair experienced difficulty sustaining its upward momentum, resulting in a recent downward movement.

This decline led to XLM falling below key support levels at $0.1200 and $0.1180. The price continued to drop below the critical $0.1150 level, ultimately reaching a low point near $0.1088. Currently, XLM is consolidating its losses, with a slight recovery observed.

During this recovery phase, XLM managed to reclaim some ground above the 23.6% Fibonacci retracement level of the downward move, calculated from the $0.1262 swing high to the $0.1088 low. However, despite this minor uptick, the price remains below $0.1180 and the 55 simple moving average (4 hours).

Immediate resistance is encountered around the $0.1150 level, where a bearish trend line has formed on the 4-hour chart. The next significant resistance sits near $0.1175 or the 50% Fibonacci retracement level of the aforementioned downward move.

A decisive break above the $0.1175 zone could propel the price toward the $0.1200 mark. Further upward momentum might even lead to a retest of the $0.1265 level. However, failure to break this resistance zone may result in continued downside movement.

On the downside, initial support is found at approximately $0.1120, followed by a more substantial support level near $0.1085. A breach of these support levels may lead to a test of the $0.100 level in the near term, with the potential to extend even further to $0.0950.

In summary, Stellar Lumen (XLM) currently trades below critical support levels, including $0.1180 and the 55 simple moving average. The price’s future direction will depend on its ability to overcome the $0.1175 resistance, with potential targets at $0.1200 and beyond. However, a failure to do so could result in further downward pressure, targeting support levels at $0.1120, $0.1085, and potentially $0.100.

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Ralf Klein is a computer engineer specializing in database technology, and as such, he was immediately fascinated by the possibilities of blockchain when he first heard about it, especially since this distributed, tamper-proof technology can be the foundation for much more than just cryptocurrencies. At ETHNews, he translates the articles of his English-speaking colleagues for the German readers. Business Email: info@ethnews.com Phone: +49 160 92211628