XLM Technical Analysis: Will Stellar Prices Surpass The 50-day SMA?

Key technical points:

Past Performance of XLM

XLM prices show a downtrend with the 50-day SMA (red) providing dynamic resistance and leading to a 50% after the bearish crossover with 100-day SMA (orange). However, the buyers maintain the market price floating above the psychological mark of $0.10 potentially leading to a double bottom pattern. On the other hand, the 50-day SMA maintains a bearish trend in motion leading to a downfall and minimizing the range of bullish turnarounds.

Source- Tradingview

XLM Technical Analysis 

The XLM price action shows a lack of bullish commitment as the lack of trading volume warns of a downfall under the $0.10 mark. Hence, traders should avoid entering early in the hope of a double bottom breakout. The MACD and the signal lines display an increase in the bearish influence leading to a crossover under the zero line. Furthermore, the shrinking bullish histograms suggest an upcoming crossover to return to the bearish alignment. Thus, the indicator reveals an underlying incline in bearish sentiments.

The RSI indicator indicates the slope is failing to recover and drops under the 14-day SMA in the nearly oversold zone. Therefore, the technical indicators take a bearish side. Howsoever, the bullish divergence in the double bottom pattern is evident in the RSI indicator projecting the possibility of a bullish turnaround from $0.10.

In a nutshell, the XLM technical analysis shows the indicators being extremely pessimist. However, the price action and the RSI divergence keep the hope of a morning star pattern significant among traders.

Upcoming Trend

Suppose the XLM prices rally with a morning star pattern; the recovery rally will drive the market price to the $0.15 mark. However, a retracement under $0.10 will result in a drop to $0.090.

Resistance Levels: $0.11  and $0.15

Support Levels: $0.10 and $0.090