Lorenzo Stroe
Independent Analyst
- A key indicator has presented a long-term sell signal for Stellar price.
- XLM must hold above a significant support level to avoid a massive 35% drop towards $0.27.
- Stellar doesn't have a lot of support on the way down.
Stellar had a massive 50% correction from a high of $0.606 on February 8 down to $0.311 on February 22. The digital asset seems to be poised for yet another leg down as technicals have turned against the bulls.
Stellar price will fall to $0.27 if it drops below this key level
On the weekly chart, the TD Sequential indicator has presented a sell signal. The most significant support level here is the 61.8% Fibonacci Retracement point at $0.40.
XLM/USD weekly chart
A breakdown below this key support level has the potential to push Stellar price down to $0.33, at the 50% Fibonacci level and as low as $0.27, at the 38.2% level. The last sell signal on December 2020 was confirmed and had a significant bearish continuation.
However, there is still hope for the bulls, which need to see a candlestick close above $0.49 to invalidate the bearish outlook. A breakout above this point could quickly drive Stellar price towards the high of $0.6.
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