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