On Apr 18, the price of XLM reached a high of $0.12 and €0.106. It has been gradually decreasing since. The decrease intensified on Apr 24.
Will the price of Stellar lumens continue to decrease or should we expect a reversal soon?
Let’s find out:
SponsoredStellar Lumens (XLM): Highlights for April 24, 2019
- The price of Stellar lumens has been on a downtrend since Apr 18.
- XLM is following a descending resistance line.
- The 10- and 20-day moving averages have made a bearish cross.
- There is support near $0.1 and €0.085.
Current Trading Pattern for Stellar Lumens
On Apr 18, the price reached a high of $0.121. A downtrend ensued and the price has reached several lower highs.
Tracing these highs gives us a descending resistance line:
There is no visible support line. In order to try and predict price movements, we need to take a look at a longer time-frame and incorporate technical indicators.
Sponsored SponsoredTechnical Indicators
Moving averages are tools used in technical analysis to smooth out price action. It is a lagging indicator since it is based on past prices. The relationship between short and long-term moving averages can help in identifying the beginning and end of a trend.
The 10-, 20- and 100-day MAs are shown in the graph below:
On Apr 17, the 10-day MA crossed below the 20-day MA. This might indicate that a new downtrend will begin. The downtrend began on Apr 18.
The price is trading above the 100-day moving average, which is currently at $0.1. This coincides with one support area which we will define in the following section.
The use of these indicators suggests that the price will decrease towards the 100-day moving average.
SponsoredReversal Areas
To determine the actual possible future price levels, we incorporate support areas into the analysis.
The closest support area is found near $0.1 and €0.085. This coincides with the 100-day moving average outlined in the previous section. We believe the price will eventually reach this area.
This is a very significant support area, therefore we do not believe it will be broken soon.
Sponsored SponsoredSummary of Analysis
Based on this analysis, the price of Stellar lumens is likely to decrease towards the support area we have outlined above. Lows around $0.1 and €0.085 may be reached in the near future.
Do you think the price of XLM will begin a reversal? Let us know in the comments.
If you’re interested in Stellar lumens price predictions for 2019 and 2020, click on the green button below:
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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