Stellar Lumens price holds $0.150 support, price to recover to the $0.200 level
3 min readTL;DR Breakdown
- Stellar Lumens price $ 0.160772 at the time of writing
- Price shows significant bullish momentum.
- Price expected to make a smooth recovery to $0.200 level
Stellar Lumens (XLM) price is enjoying bullish momentum today as the price bounces back from the $0.150 support level. The bearish pressure on the asset has decreased considerably enabling the buyers to trigger a sharp recovery.
The broader crypto market has also turned bullish, and the Bitcoin price has left the $18,000 level climbing towards the $19,000 mark.
Stellar Lumens price analysis
Across the 1-day frames, Stellar Lumens price has remained inside a narrow descending channel since November 28. The wavelike bullish activity has caused the price to decline from above the $0.200 mark to $1.500 with steady bearish momentum marking the charts.
However, after reaching the $0.150 mark, the buyers have acted to defend the price level, and the price action has recovered smoothly. The price is currently trading above the $0.158 mark showing further upward movement in sight.
On the technical indicators, the Bollinger Bands are narrowing, suggesting a period of low-volatility on the 1-day charts. The RSI shows a similar sentiment as the indicator hovers close to the 50.00 mark. The MACD shows declining bearish momentum as the two EMAs begin to converge. However, the convergence is not sharp, suggesting further sideways movement.
Overall, the indicators suggest that the price action will observe sideways movement at the level as the market momentum remains low on either side.
The current price action suggests that Stellar Lumens price may see a V-shaped recovery towards the $0.200 level. The price action would need to break above resistance levels at $0.1750 and further above at $0.190 before the price can recover to $0.2000 mark.
Conversely, if the price breaks below the nearest support level at $ 0.150, the next support level lies at $1.40 and further below at $1.00.
XLM/USD 1-hour charts
The 4-hour frames show that Stellar Lumens price made a V-shaped recovery to the $0.220 mark. However, the price failed to close above the level, and the bullish momentum collapsed under the increasing bearish pressure.
Subsequently, the price action turned bearish and started moving in a descending channel that caused it to decline towards the current level. The price declined to $0.140 before finding a strong support level to end the channel. The price sharply recovered to $0.178, but the bullish momentum was feeble, and the price fell into another descending channel.
The second descending channel caused the price to fall to $0.150 support level. While the bearish momentum has disappeared since then, the price is yet to leave the $0.160 level.
On the technical indicators, the Bollinger Bands are currently squeezed, suggesting that a period of high volatility would follow soon. The MACD has turned bullish while the RSI remains neutral, suggesting that the price action is bullish and has potential for significant upwards movement. As such traders should expect Stellar Lumens price to move towards the $0.200 mark with strong bullish momentum.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
