Technical Analysis for XLMUSD for 20th October 2021
Stellar Pullbacks from H2 2021 Highs at $0.42
Past Performance of XLM
The uptrend is valid, and the 20-day moving average is positively slanting as per the candlestick arrangement in the daily chart.
At present, Stellar sellers appear to be flowing back, capping the uptrend and preventing buyers from clearing this week's highs at around $0.42.
XLM is down one percent on the last trading day.
What to Expect of XLM
Even though sellers are slowing down XLM buyers, the probability of XLM/USDT surging to new H2 2021 highs remains high.
In that case, a close above $0.42 would affirm buying pressure of early Q3 2021.
Considering the significance of the resistance line, this would mark the second leg up that may place XLM at $0.75 in the medium term.
Conversely, a dump below October 16 lows of around $0.35 and the middle BB may spark a sell-off back to $0.30 and $0.25.
Stellar Lumens Technical Analysis
The XLM/USDT price action favors buyers.
Even so, the uptrend is capped, and the upswing momentum is fizzling as trading volumes taper.
Ideally, a close above the critical resistance line at $0.42 ought to be with above-average participation. This may ignite demand for a swing towards H1 2021 highs of around $0.75.
Meanwhile, buyers are still in control from an Effort-versus-Results perspective as long as $0.35—October 16 lows—hold.
However, dumps below this mark would be the basis for another wave back to $0.30 in a pullback from H2 2021 highs.
Resistance level to watch: $0.42
Support level to watch: $0.35
Disclaimer: Opinions expressed are not investment advice. Do your research.