Stellar Lumens Price Prediction: XLM risks diving to $0.065 as technicals turn bearish
|- Stellar price was rejected at the 50 SMA and the descending parallel channel, paving the way for ongoing declines.
- XLM/USD upside capped at the Bollinger Bands middle layer; the least resistance path remains downwards.
The cryptocurrency market suffered a setback on Thursday, with bears regaining control across the board. Stellar Lumens also experienced the retreat, following a rejection from areas slightly above $0.075. On the downside, short-term support appears to have been established above $0.07. XLM/USD is trading at $0.073 after a 2.4% loss over the last 24 hours.
Stellar introduces fiat on/off ramp services for regulated financial institutions
In a blog post published on September 29, the Stellar Organization has announced the introduction of fiat on/off ramps services tailor-made for regulated financial institutions. The institutions now can create anchor services on the network to “accept withdrawals and deposits via traditional rails, and convert them to and from digital currency.” Moreover, the anchors have been designed a way that they are interoperable, which means they can communicate “with one another — and with other Stellar-built applications — to empower users to transact across borders and across currencies.”
Stellar rejected at crucial levels
Stellar recently recovered from a dip that embraced support marginally above $0.065. The bullish action stepped above $0.07 and $0.075 levels, respectively. Unfortunately, the price hit a wall at the 50 Simple Moving Average in the 12-hour timeframe. A descending parallel channel resistance also capped the upside. Rejection from these two levels might gain momentum, thereby sending XLM back to the support at $0.065.
XLM/USD 12-hour chart
The Bollinger Bands in the 4-hour timeframe shows XLM trading below the middle layer resistance. If Stellar fails to break above this resistance, a breakdown could continue towards the support mentioned at $0.065. Besides, the constricting Bollinger Bands are leading to a squeeze and the return of volatility. The Moving Average Convergence Divergence (MACD) highlights the firm bearish grip as it grinds into the negative territory. For now, the path of least resistance remains downwards unless something drastic happens to change the course.
XLM/USD 4-hour chart
Looking at the other side of the picture
Technical indicators such as the Relative Strength Index (RSI) in the 12-hour timeframe bring into the picture the possibility of consolidation. At the same time, if the RSI gains ground above 50, XLM could resume the uptrend. Similarly, if the price manages to break above the 50 SMA, the move will call for more buy orders, creating enough volume to sustain an uptrend to $0.09 (slightly above the 200 SMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.