Stellar market update: XLM/USD extends the downside correction, down 3% since Thursday
- XLM/USD has started a natural correction from strongly overbought levels.
- Strong support at $0.07 might slow down the bears.
Stellar is the only altcoin in a red zone on a day-on-day basis out of top-20. The coin has retreated from the recent high of $0.0936 to trade at $0.0762 at the time of writing, it is still over 12% higher from this time on Wednesday. Stellar now takes the 10th position in the global cryptocurrency market rating with the total market value of $1.5 billion. Stellar’s average daily trading volume stay elevated as compared to long-term average figures.
Considering a speculative nature of Stellar’s growth, further downside correction may gain traction within the next trading sessions.
Stellar's technical picture
XLM/USD has settled in the area below SMA100 (Simple Moving Average) on a daily chart ($0.0855) and returned within the daily Bollinger Band with the upper boundary at $0.0780. This barrier now serves as a resistance that might cap the recovery. However, if it is broken, the upside momentum is likely to gain traction with the next focus on SMA100, followed by Thursday's high of $0.0888 and the recent high of $0.0936.
On the downside, the price may retest psychological $0.07 and test SMA50 daily currently at $0.0680. This line coincides with the mid-term sloping trendline. The coin retains positive bias as long as it stays above this area. We will need to see a sustainable move below this handle for the sell-off to gain traction towards $0.0630 (the middle line of four-hour Bollinger Band).
XLM/USD, one-day chart
Author
Tanya Abrosimova
Independent Analyst
