- XLM price has been trading inside a robust uptrend since January 27.
- The digital asset faces strong resistance in the short-term and could fall to $0.30.
- A crucial indicator has presented several sell signals for Stellar.
Stellar is up by 80% since its low established on January 27 at $0.23. The digital asset has topped out at $0.4225 on February 7, establishing a potential double top on the 12-hour chart.
XLM price can quickly fall to $0.30 according to various indicators
The TD Sequential indicator has presented a sell signal on the 9-hour chart and it’s on the verge of doing the same on the 12-hour chart. The first call hasn’t been validated just yet but adds credence to the potential next sell signal on the 12-hour chart.
XLM Sell Signals
On the 12-hour chart, XLM has been trading above the 26-EMA since January 28 holding this support level significantly. A breakdown below the 26-EMA, currently located at $0.366 would be notable.
XLM/USD 12-hour chart
Losing $0.366 could quickly push XLM price towards the 50-SMA support level established at $0.30. This is the most likely scenario in the short-term due to the sell signals presented by the TD Sequential indicator.
XLM/USD 12-hour chart
However, bulls can invalidate the bearish outlook by pushing XLM price above $0.40 decisively. There is an ascending triangle pattern formed on the 12-hour chart. A breakout above the upper trendline could drive XLM towards a high of $0.70.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.