Stellar price analysis: XLM/USD two-months uptrend hits a snag at key supply zone

XLM/USD has been trading lock-step within an ascending channel on the 4-hour chart. The uptrend commenced at the beginning of February after Stellar found balance at $0.06651. Using this region as support the bulls pushed for higher corrections above both the 100 SMA and the 200 SMA 4-hour. However, the bullish momentum hit a snag at the channel resistance resulting in a trend reversal under the Simple Moving Averages on the same chart.

Several bullish attempts have not been able to break past the channel resistance with any success. Following the substantial gains on March 19, XLM batted the resistance but came short of the supply zone at $0.12 leading to another downside correction.

At press time Stellar is trading at $0.1039 with the upside immediate capped by the 100 SMA 4-hour. On the upside, the key levels to look out for are the channel resistance and the supply zone between are $0.12 and $0.14. The MACD shows that there is indecision in the market with little to no movement expected in the coming sessions. However, a look at the RSI on the 4-hour chart, we see the bears gaining more control as the indicator signal changes direction downwards. The RSI has avoided both the oversold and the overbought regions since March 10 to show that the market’s stability is likely to continue.

In other news, XLM has been added to Coinbase Earn giving people an opportunity to earn up to $50 in XLM. The announcement by Coinbase reads:

“Proud to announce the newest and biggest Coinbase Earn opportunity today: Earn XLM. Any eligible user can now earn up to $50 in XLM by completing quick tutorials on Stellar and inviting friends.”

Read more on Stellar's support on Biance Trust Wallet App.

XLM/USD 4-hour chart

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