Price Analysis: XLM Drops 4%, Bears Targeting $0.08

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The Bear Market Isn't Over Yet - Here’s Why!
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Resistance levels: $0.09, $0.12, $0.14

Support level: $0.08, $0.07, $0.06

XLM/USD Price Long-term Trend: Bearish

XLM

The XLM price continues its bearish movement on the long-term outlook.  XLM was bearish last week, the Bears hold tight to the XLM market and the bearish movement continues. XLM price found support at $0.09 level last week.

It consolidated for three days before the Bulls pushed the coin up towards dynamic resistance levels of 21 and 50 periods EMA. The rise in the price of XLM price was opposed or resisted and the price dropped to the previous low. The Bears exerted a pressure yesterday and the $0.09 level was penetrated. Today’s daily candle is bearish which indicate that the bearish momentum is increasing.

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The bearish trend that is ongoing seems to be the completion side of the Head and Shoulder pattern formed on the Daily time frame. The coin is at a distance to the two EMAs and XLM is trading below 21 periods EMA and 50 periods EMA; this connotes that the Bears’ momentum is increasing.

Meanwhile, the Moving Average Convergence Divergence period 12 is below zero levels and the signal lines pointing down to indicate sell signal. XLM broke down $0.09 level targeting $0.08 level.

XLM/USD Price Medium-term Trend: Bearish

XLM

On the medium-term trend, the XLM price is bearish. The bearish momentum has led to the formation of Head and shoulder pattern on the 4-hour chart. The bearish momentum may continue as the coin is already exposed to the support level of $0.08 and more bearish candles are emerging. Increase in the Bears’ pressure may push XLM to reach $0.08.

XLM is trading below the 21 periods EMA and 50 periods EMA. The MACD period 12 is below zero levels with the signal lines pointing down to indicate sell signal and a further decrease in XLM price.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.