Stellar Market Update: XLM/USD nosedives from new 2020 highs

Stellar plummets from the new yearly high and finds support at $0.0850.
XLM/USD is dealing with increased selling pressure as the Elliot Wave Oscillator prints the first bearish session in July.

Stellar is free-falling after hitting a snag at $0.10. This crypto token has been on an upward roll since the beginning of July. Note that the gains in June hit another wall at $0.0850 before plummeting under the 23.6% Fibonacci retracement level taken between the last swing high of $0.1014 to a swing low at $0.02756.

Following the support at the 200-day SMA in the last week of June, Stellar embarked on a steady rise hitting the afore-mentioned yearly high ($0.1014). At the time of writing, the price has adjusted lower to $0.08954 (prevailing market value) after making a shallow bounce from $0.0850.

For now, the path of least resistance is to the south, especially with the RSI diving under the overbought. Moreover, the indicator is still pointing towards the midline, highlighting the strong bearish grip. Similarly, the Elliot Wave Oscillator has started the first bearish session in July. If support at $0.0850 fails to hold, Stellar is likely to plunge back to April highs around $0.0750 (second key support). Additional support areas include the 50-day SMA at $0.0742, the ascending trendline, the 50% Fibo and the 200-day SMA at $0.0616.

XLM/USD price chart

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.