- XLM/USD is falling for the third straight day on Sunday.
- $0.53 support appears at risk after the double top reversal on the 1D chart.
- RSI points south towards the midline as the XLM price eases from record highs.
Stellar Lumens (XLM/USD) is looking to extend its correction from record highs of $0.7165 into the third consecutive on Sunday, as the bears retain complete control amid a selling wave witnessed across the crypto board.
The XLM price eyes deeper losses in the session ahead, as the technical setup remains tilted in favor of the bearish traders. At the press time, the altcoin trades around $0.5950, shedding about 3% so far this Sunday.
XLM/USD: Bearish potential in place, with losses to deepen below Thursday’s low
XLM/USD: Daily chart
As observed on the daily chart, XLM/USD is challenging Thursday’s low at $0.5781, as it extends its double top bearish reversal.
The 14-day relative strength index (RSI) points south towards the midline, having taken a sharp U-turn from the higher levels, suggesting weakening bullish momentum.
Therefore, the XLM sellers need a sustained move below Thursday’s low to extend their control.
The next crucial cap awaits near the $0.53 demand area, the confluence of the 21-daily moving average (DMA) and the ascending trendline support, which connects the two higher lows on the said time frame.
The 50-DMA support at $0.4971 could challenge the bearish commitments if the correction from all-time highs deepens.
However, the price of Stellar Lumens could rebound towards the $0.65 mark should the $0.53 support hold.
Next in sight for the XLM buyers remain the record highs above $0.70.
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.