Previous article Stellar price analysis: XLMUSD bearish on major trend reversal pattern Next article Home Latest Cryptocurrency News Stellar price analysis: XLMUSD bearish on major trend reversal pattern Stellar price analysis: XLMUSD bearish on major trend reversal pattern By - min read 30 September 2020 XLM/USD price is $0.072 and is turning massively bearish as the highly reliable evening Doji star forms on the monthly chart. The technical picture for Stellar’s XLM token is strongly bearish as a candlestick pattern on the monthly chart appears. As of writing, the XLM/USD pair is trading around $0.073, largely unchanged over the last 24 hours. However, with prices capped below a strong resistance area, a validation of the pattern and a combination of technical signals on lower time frames could see the price tank to new lows. On the flip side, a strong showing on LTFs could invalidate the bearish outlook if bulls hold prices above the psychologically important level of $0.070. Stellar traded as high as $0.119 on August 17th but has been in a downtrend since to see its price sink to lows of $0.066. While a slight upside between September 23rd and 24th lifted part of the gloom, a subsequent reversal has seen bulls capped below the 50 MA and 200 EMA. These areas on the longer time frame offer strong rejection points. Looking at XLM/USD on the monthly chart we see that the cryptocurrency has formed the evening Doji star. This candlestick pattern presents with three candles: you can pinpoint a long green candle, then one with an extended upper shadow but with an insignificant body, and finally a red candle that extends lower. The XLM/USD pair has this pattern formed; suggesting added selling pressure might see it register further downward action. Stellar (XLM) monthly price chart. Source: TradingView On the weekly chart, the XLM/USD pair has crossed under the lower trendline of an ascending channel formed from June lows of $0.059 to August highs of $0.119. The cryptocurrency is also changing hands below the 50 EMA that provides resistance at $0.078. As noted above, keeping prices above $0.070 is essential if bulls can prevent any would-be downside from bringing into play the 50 MA line at $0.068. Below that, the next refuge is at $0.46 As such, bulls need to break above the short-term moving averages to retain any chance of revisiting the important area around $0.08. If the prevailing sell-off pressure sustains, the technical outlook for XLM/USD would be decidedly bearish. An advantage to the bears means prices around $0.068- $0.06 is the next target. The RSI continues to slope, suggesting sellers still have the upper hand. XLM/USD weekly chart. Source: TradingView If we look at the daily chart, the price of Stellar against the US dollar is capped by a strong hurdle at the 23.6% Fibonacci retracement level of the downswing from highs around $0.119 to lows of $0.07. That hurdle is at $0.08. XLM/USD price daily chart. Source: TradingView The 100 EMA ($0.083) and 50 MA ($0.087) are followed by the 50% and 38.2% Fibonacci retracement levels that offer the next challenge at $0.09. Share this article Categories Analysis Tags Stellar