Technical Analysis for XLMUSD for 7th April 2022
Stellar Lumens Freefalls, Drops 6% as Sellers Target $0.19
Past Performance of XLM
The XLM price is trending lower at spot rates. Notably, the coin is down six percent and below the 20-day moving average as prices retrace after rallying 45 percent from March 2022 lows. Currently, sellers are in control, reversing recent gains in a cool-off after posting solid gains.
Stellar Lumens Technical Analysis
The path of least resistance is southwards at spot rates. As per the formation in the daily chart, there is a bear engulfing bear candlestick with expanding volumes after a 45 percent surge. This drawdown points to weakness and possibly protracted losses in the immediate term. Pasting a Fibonacci retracement tool to recent swing high and low, XLM could retest $0.18 and $0.19 in the immediate level. These are the 78.6 and 61.8 percent Fibonacci retracement levels—crucial reaction levels. As a result, aggressive traders may seek to unload on every pullback towards April 6 highs of $0.22, with the immediate target at $0.19. Conversely, unexpected sustained gains and a sharp reversal of April 6 losses, maintaining prices above $0.22, would swing to favor buyers, invalidating the bear outlook.
What to Expect of XLM
Sellers are in control at spot rates. A confirmation of yesterday's losses below the middle BB may accelerate the sell-off towards crucial support levels at $0.19 and $0.18, respectively.
Resistance level to watch: $0.22
Support level to watch: $0.19
Disclaimer: Opinions expressed are not investment advice. Do your research.
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