XLM price breaks below key support as bears return

  • Stellar price action sees bulls losing control over the 38.2% Fibonacci level at $0.34.
  • XLM price breaks $0.31 on the downside and could see an acceleration in the Stellar sell-off.
  • The double bottom at $0.29 is the only support stopping bears from completing the swing trade.

Since the end of September, Stellar (XLM) price action has been on an uptrend, with bulls getting capped just below the 200-day Simple Moving Average (SMA) at $0.37. Price action started to fade quickly on Monday, with the body of the candle not being able to get above the 38.2% Fibonacci level at $0.35. Bears in Stellar broke below the 50% Fibonacci level at $0.31 and tried to target $0.29, which is the 61.8% Fibonacci level.

XLM price to complete retracement to $0.20

Stellar price action got rejected on Tuesday at the 38.2% Fibonacci level around $0.34, which made bulls fade out of XLM. In that rejection, bears saw their opportunity to take out the monthly pivot level and go for a break below the 50% Fibonacci level at $0.31. With this breach, many red flags will be raised, and bulls will want to lock in their profits that have been built up since the beginning of October. 

XLM price sees the 55-day SMA holding some importance, but bears broke through it since Sunday. On the downside, bears face quite a few supports, with $0.30 that originates from June 20 and $0.29, which is the 61.8% Fibonacci level in the retracement. Certainly, that last one also holds some short-term importance as the break of September 30 and the rebound on October 4.

XLM/USD daily chart


XLM/USD daily chart

Stellar bears will want to try and complete the Fibonacci retracement toward $0.20, but that might be a bridge too far as bulls will want to defend their entries at $0.25. At that level, the S1 support from September falls in line. 

In case bulls get a little hand from some favorable tailwinds, expect them to reclaim $0.34. Another leg higher would see a test on the 200-day SMA and $0.38. Should XLM price action see even more buyers adding volume to the rally, a retest of $0.44 could be in the cards.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ethereum Classic price lags behind Bitcoin and XRP despite upcoming rally

Ethereum Classic price action for the Thursday trade session has been the definition of a whipsaw. The daily candlestick open has dropped as much as 9.5% and spiked higher by as much as 10.5% - big swings in all directions.

More Ethereum Classic news

VeChain price nears a 120% bullish breakout

VeChain price has made significant gains during the Thursday trade session, capitalizing on Ethereum’s bullish move to new all-time highs. VeChain itself has traded higher than 10% on the day, outperforming the majority of its peers. VeChain is likely to convert to bull-market conditions ahead of most altcoins.

More VeChain news

Polkadot price sees bullish breakout, but risks fading

Polkadot (DOT) has made another attempt to break out of the bullish triangle. This is the fourth time already in just one month that price has tried to break to the upside, making it primed to likely succeed at the next attempt.

More Polkadot News

Litecoin bears want to take over, but LTC price still eyes $400

Litecoin price attempts to outperform Bitcoin and Ethereum. A rally of over 100% is likely if Litecoin can crack above some key resistance levels ahead. Litecoin is on target to make its own, new all-time highs if conditions are favorable.

More Litecoin News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast