Are Stellar Lumens About To Bottom Out at $0.10? (XLM/USD Price Analysis for 04/16/19)

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At BeInCrypto, we publish regular price analyses and predictions for various cryptoassets. In our Apr 12 analysis of Stellar lumens (XLM), we predicted the price would increase. Our prediction was validated on Apr 15, when the price reached the resistance area we have defined below.To learn more, keep scrolling to read our latest analysis.

On Apr 8 2019, the price of Stellar Lumens reached a low of $0.138. A gradual decrease ensued.

The price reached lows of nearly $0.11 on Apr 12 and Apr 15.

Will the price of Stellar lumens keep going down or should we expect a reversal soon?

Let’s find out:

Stellar Lumens (XLM): Highlights for April 16, 2019

  • The price of Stellar lumens has been on a downtrend since Apr 8.
  • Since then, XLM/USD is trading inside a descending triangle.
  • 20- and 100-period moving averages have made a bearish cross.
  • There is support near $0.10.

Current Trading Pattern for Stellar Lumens

In this section, we analyze the price of XLM/USD at one-hour intervals from Apr 7 to Apr 16 to trace the current trading pattern.

On Apr 8, the price reached a high of $0.138. A gradual decrease ensued, and the price made several lower highs. Tracing these highs gives us a descending resistance line.

Tracing these lows gives us an ascending support line:

On Apr 11,  the price reached a low of $0.11. Several market cycles have been completed since and the price has reached the same level three times.

Tracing these lows gives us a horizontal support line.

The support and resistance lines combine to create a descending triangle:

Will the price break down from this triangle?

In order to answer that question, we need to take a look at a longer time frame combined with technical indicators.

Technical Indicators

In this section, we will analyze the price of XLM/USD at two-hour intervals from Mar 4 to Apr 16 alongside the 20- and 100-period moving averages (MA).
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 price has been trading inside an ascending channel since Mar 4. We have spoken about this channel and a possible breakdown in our April analysis.

On Apr 15, the price moved below this channel. During the same time, the 20-period MA crossed below the 100-period one, indicating that the current trend may be over and a new downtrend may have begun.

The use of this indicator and previous price movement suggests that the price is likely to break down from the triangle.

Where will it find support?

Support Areas

To determine the actual possible future price levels, we incorporate support areas into the analysis.

Support areas are created when the price visits the same level several times. If a breakdown occurs, they can create possible areas of reversal.
These are shown in the graph below:

The closest support area is found near $0.10. We believe that the price is likely to reach this area in the future.

Summary of Analysis

Based on this analysis, the price of Stellar lumens is likely to break down from the triangle and reach the support area we have defined below.

Do you think the price of XLM will break down from the triangle? 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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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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