Stellar Market Update: XLM/USD nosedives from new 2020 highs
- Stellar plummets from the new yearly high and finds support at $0.0850.
- XLM/USD is dealing with increased selling pressure as the Elliot Wave Oscillator prints the first bearish session in July.
Stellar is free-falling after hitting a snag at $0.10. This crypto token has been on an upward roll since the beginning of July. Note that the gains in June hit another wall at $0.0850 before plummeting under the 23.6% Fibonacci retracement level taken between the last swing high of $0.1014 to a swing low at $0.02756.
Following the support at the 200-day SMA in the last week of June, Stellar embarked on a steady rise hitting the afore-mentioned yearly high ($0.1014). At the time of writing, the price has adjusted lower to $0.08954 (prevailing market value) after making a shallow bounce from $0.0850.
For now, the path of least resistance is to the south, especially with the RSI diving under the overbought. Moreover, the indicator is still pointing towards the midline, highlighting the strong bearish grip. Similarly, the Elliot Wave Oscillator has started the first bearish session in July. If support at $0.0850 fails to hold, Stellar is likely to plunge back to April highs around $0.0750 (second key support). Additional support areas include the 50-day SMA at $0.0742, the ascending trendline, the 50% Fibo and the 200-day SMA at $0.0616.
XLM/USD price chart
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Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
