- Stellar Lumens price falls below $0.170 as bears dominate
- Charts show decreasing volatility suggesting a stagnating price action
- Price expected to observe sideways movement at the current price level before a bullish breakout
Although Stellar Lumens (XLM) price has recovered from the lows of $0.1500, the bullish rally was short-lived, and the price failed to cross above the $0.1800 level. The increasing bearish pressure caused the price to decline below the $0.1700 level before the bulls could fight back,
Currently, Stellar Lumens price is trading below the 20-day simple moving average (SMA) and seems to be facing trouble in climbing above. The increasing bearish pressure on the asset’s price leaves little room for bullish movement.
Stellar Lumens price across the 1-day frames
Stellar Lumens price declined below the $0.100 mark in September and did not cross above that level until late-November. The price action remained consolidated as the price moved between $0.0700 and $0.100, showing little volatility.
On November 21, the bulls dominated the markets completely as the price crossed above the $0.100 level with strong bullish momentum pushing it above $0.1090 before the day ended. After a brief correction on Number 22, the markets turned green once again as the price rose sharply to the $0.200 level before meeting a strong resistance level.
Despite making multiple attempts at an upwards breakthrough, the price failed to close above the $0.200 level due to the bearish pressure. As the bullish momentum exhausted, the price was rejected from the level and entered a descending channel sending the price to a support level at $0.150.
While the price has recovered since then, the price action failed to move above the $0.1800 level causing the price action to fall below the $0.1700 level where it currently hovers.
The Bollinger Bands are contracting to a squeeze suggesting a period of increasing volatility will follow. On the other hand, the RSI remains unbought and hovers close to the 50.00 level showing little support towards either side. Meanwhile, the MACD shows decreasing bearish momentum as the two EMAs move close together.
The price action moves below the 20-day SMA, but the size of the red candlesticks seems to be decreasing showing decreasing bearish pressure. With the positive indicators and the declining bearish pressure, the price can be expected to observe sideways movement between the $0.1700 level and the $0.16500 level.
Stellar Lumens price across the 1-hour frames
Stellar Lumens price is currently in a period of low volatility with the price trading near the support level at $0.1670. Currently, the charts observe declining bearish momentum as the buyers appear to be fighting back. However, the trade volume remains relatively low.
Across the technical indicators, the MACD shows declining bearish momentum as the two EMAs move close together. However, the RSI remains unbothered and moves close to the 50.00 level that suggests price volatility will increase in the coming days. Similarly, the Bollinger Bands are also in a squeeze suggesting high volatility in the near future.
Traders should expect the price to observe sideways movement in the current price level as the trade volume remains low. If buyers hold the current support level for the next day, the price can be expected to make a bullish breakout above the $0.1750 level. However, if the trade volume remains consistently low the price can observe a bearish breakout to support at the $0.1600 level.
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