- XLM price has not retested any strong Fibonacci levels.
- Stellar Lumens price is forming a double top on the RSI.
- Invalidation for the bearish model is a close above $0.24.
XLM price is showing more bearish signals. Early buyers should be careful as price action may begin plummeting in the days to come.
XLM price spells trouble
XLM price has been one of the more concerning digital assets lately. Mid-March documented that the Stellar Lumens price would likely stall in the $0.22 range. The bears established RSI divergence on the 12-hour chart to close the month. The two-day chart shows similar signs of a weakness in the current uptrend.
Stellar Lumens price is currently trading at $0.22, printing lower highs progressively on the 2-day chart. XLM shows a double top resistance pattern on the Relative Strength Index. The pattern is established strictly at the sellers’ notorious 60 level, a level likely to scare professional traders away from scalps or uptrend fades.
XLM price still has not retested any strong Fibonacci levels. Due to the amount of chop in the $0.22 zone, traders are probably waiting for the 38.2% Fib level at $0.20 to interact with the Stellar Lumens price before making any long-term decisions.
XLM/USD 2-Day Chart
The bearish model can be invalid if the bulls can print a close above the $0.24 on the 2-day chart. If this were to occur, the XLM price could continue soaring towards order blocks at $0.26 and even $0.29, resulting in up to a 30% increase from the current levels.
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.