Stellar Lumens (XLM) Technical Analysis: Looking Weak at the $0.10 Level

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Stellar Lumens has extended its losses today with a further -1.21% decline against BTC as bears continue to dominate the XLM market. After falling from its Q4 high at 4,714 Sats on November 20 2019, the asset has struggled to regain composure and is now currently trading at a 10-month low.

Right now sellers are threatening to break bearish through the psychological $0.10 level which, if it happens, is likely to have a significant impact on buying confidence going into next month and will undoubtedly become a strong resistance for XLM.

On the 1D XLM/BTC chart we can see that increased selling pressure over the last 24hrs has managed to overcome the downtrending support of a falling wedge pattern which had previously propped up the price action 3 times over the last month.

This downside continuation has created a bearish divergence between the 12MA and 26MA lines on the 1D MACD indicator, and has forced the 1D RSI line to spike downward towards the oversold region.

Despite these bearish signals and the asset’s poor intraday performance however, the 1D Chaikin Money Flow indicator has been generally uptrending over the last 31 days and is close to converging above the zero line. This suggests that the current price trend could be uncertain and starting to weaken. This may be the result of bears being shaken out of the XLM market or perhaps bullish trader waiting to take advantage of sub-$0.10 tokens.

In order to be more certain of a bullish trend reversal we still need to see further confirmations come from converging moving averages, Parabolic SAR dots appearing beneath the 4H-1D candles, a bullish T/K crossover on the Ichimoku indicator and a convergence between the Aroon Up and Aroon Down lines.

Stellar Lumens (XLM) Price Targets

All ROI’s and losses are calculated from the asset’s current value at 2,795 Sats (AToW).

R1: 2,924 Sats (4.61% ROI)

S1: 2,773 Sats (-0.79% Loss)
S2: 2,672 Sats (-4.40% Loss)
S3: 2,598 Sats (-7.05% Loss)

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