Stellar market update: XLM/USD trapped in a range, stable despite the sell-off on the market
- XLM/USD has been range-bound after a sharp sell-off during the previous week.
- Strong resistance at $0.06 might limit the recovery.
Stellar (XLM) has been under pressure lately losing 14% of its value in recent seven days. At the time of writing, XLM/USD is changing hands at $0.0570, mostly unchanged both on a day-on-day basis and since the beginning of Monday. Stellar is the tenth-largest cryptocurrency with the current market value of $1.16 billion and an average daily trading volume about $164 million, which is nearly half as much as on Friday, September 27.
Stellar's technical picture
XLM/USD has been moving in a tight range limited by the lower and the upper lines of four-hour Bollinger Band at $0.05656 and $0.05920 respectively. On the upside, the next resistance is located at psychological $0.06. This barrier is strengthened by SMA50 (Simple Moving Average) on a four-hour chart. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.0635 (SMA100 four-hour) and $0.0700.
On the downside, once the above-mentioned the lower line of four-hour Bollinger Band is broken, the sell-off may be extended towards the recent low of $0.0524. The critical support is created by psychological $0.0500.
XLM/USD, the four-hour chart
Author
Tanya Abrosimova
Independent Analyst
