Stellar Lumens, which climbed above $ 0.1 and reached a local peak at $ 0.56 in November, performed very well in the markets. However, it has since faced steady selling pressure, and the last few days have seen the price repeatedly test a $ 0.43 supply area. However, it could not break this resistance. So will XLM go up?
1-hour Stellar Lumens (XLM) price chart
The short-term outlook for XLM is bearish. The past two days we’ve seen XLM try to surpass $ 0.41, but the bulls couldn’t create enough strength. The region highlighted around $ 0.43 is an area where XLM has been rejected many times in the last three weeks.
This area was converted from supply to demand in about ten days until February, but XLM bounced back below this area after Bitcoin dropped from $ 58,000 to $ 45,000.
Closing a trading session below $ 0.4 could be an indication that XLM is down to $ 0.382 in the coming hours, or even as low as $ 0.363 in a few days.
On the hourly chart, the RSI dropped below the neutral 50 and retested as resistance even if the price fell below the previous support level. This marked the rising bearish momentum in the short term. Longer timeframes also showed a similar momentum shift.
OBV is in a steady downtrend. The $ 0.37 bounce saw remarkable buying volume. The bounce took the price above $ 0.4, but the bulls couldn’t hold on.
Will XLM go up?
The area of $ 0.35-0.363 could be a zone where XLM will be traded in the coming days due to bearish pressure. If the bulls manage to defend this place in multiple tests, this will be a place to look for potential buying opportunities.
Losing this area could result in XLM falling to $ 0.284, but the support levels to watch over the next few days at $ 0.383 and $ 0.363.