Stellar (XLM) Might Continue to Slump as Bulls Refuse to Turn Up

• The XLM/USD pair remains in a medium-term bearish trend following May 16 price rejection at $0.16 price level.
• Stellar (XLM) is likely to reverse the trend if the bulls can show a strong commitment.

In mid-May, Stellar reversed the trend and began to roll over in a downward range. Up until now, the price of XLM has continued to stumble, and as we can see, the market is currently under bearish control.

During the mid-August surge, however, Stellar Lumen successfully broke below the key support level to of $0.074, which is now acting as important resistance for the market. With that, the XLM/USD pair has recently recorded a 2.1% loss over the past few hours. Nevertheless, we may experience more price drop in the next few days

Stellar (XLM)’s Current Statistics

Trading Price: $0.059

Market Capitalization: $1,191,045,788

Trading Volume: $120,661,501

Key Resistance Levels: $0.065, $0.07, $0.075

Key Support Levels: $0.055, $0.050, $0.045

Stellar Price Analysis for September 6, 2019

The 4-hours timeframe for Stellar shows that the market is following a bearish sentiment over the past weeks. Meanwhile, the price is approaching a tight range on the wedge pattern, which is shaping for the past 40 days now. XLM is currently rolling back as the next level of support lies at $0.055, $0.05, and $0.045 supports.

In case of a bullish reversal, the price of Stellar is likely to rise back to $0.065, $0.070, $0.075 resistance. But as it appeared now, the XLM/USD pair is still showing a sign of weakness as the bears assume control of the market. More so, the trend may continue to look for stable support level for a rebound. On a long-term outlook, the market remains in a dominant bearish bias.

Conclusively

Since May 16, Stellar’s price has seen a reduction due to significant selling pressure in the market. If the bearish pressure remains dominant, we can expect the XLM market to continue rolling down until the bears run out of momentum. By then, the bulls might step in and regain control of the market. But for now, the price of Stellar Lumen is still dropping.

Technical Indicator Reading

The RSI for Stellar is currently testing the oversold level due to a sharp price drop – the bears are returning in the market.

The Stochastic RSI has sharply nosedived after climbing towards the overbought area, reflecting a bearish step back in the market.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.