XLM Price Prediction: Stellar caught in downtrend to $0.195

XLM price is in a consecutive three-day losing streak.
Tops and lows are getting lower in tandem.
More downside is expected for Stellar as no real support now is present until $0.195.

XLM price tried to make a recovery this past weekend. On Sunday, buyers got caught up in what looked like a false breakout to the upside, and as of Monday, sellers are dictating the price action in Stellar with the confirmation of a short-term trend channel to the downside.

XLM price under heavy selling pressure

Not only is XLM price on the chopping block, but other major cryptocurrencies as well. As of Monday, Stellar price action confirmed that it is in a downward channel and does not look likely to break out anytime soon. The highs are coming in lower every day, and lows are getting lower by the day with sellers are very much dictating XLM price action.

Today, the monthly S1 support pivot got taken out at $0.228. Further to the downside, XLM price is supported by S2 support at $0.209, which falls in line for the moment with the lower leg of the trend channel. Historically, this support has proven to be very thin.

XLM sellers will go for the full squeeze against the buyers and push price action to $0.195, which aligns with the low from June 22. That level looks to have more support with S3 support levels from the previous month and this month just below.

XLM/USD daily chart

Expect short sellers to ride out this trade to the tick. Sellers are that much in control, and with current sentiment in the crypto space, that acts as a tailwind in their favor.

Buyers will be awaiting the completion of that trend channel toward $0.195 before getting in long. If XLM price can then break out of the descending trend channel, a retest would be possible in the coming months toward $0.3035.

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.