Stellar (XLM) Falls to Trade at the Previously Formed Support Around $0.055
- Stellar trades at $0.055; holds a strong bearish outlook
- The month of December started with a fall, as the price of XLM dropped from $0.059 to $0.055
- The technical indicators exhibit the selling pressure and lack of support from the moving averages
- Stellar currently trades below 23.60% Fib Retracement level, manifesting a bear candle formation
Stellar started the last trading month of the year on quite a declining note. Having fallen from $0.059, XLM is trading below the said price since the first day of December and currently trades at $0.055. In the previous 30-day time frame, XLM has hit the lowest at $0.0535 after having hit top formed by a bullish green candle at $0.090 on Coinbase.
The downtrend below $0.057 was experienced just yesterday, wherein $0.055 was expected to be a major support. However, Stellar price has currently shifted towards previously formed major support areas.
Stellar Price Prediction
Taking a glance at the daily movement of XLM/USD over the past six months, we see that the coin is on a downswing in the whole timeframe after soaring at $0.170071. This was just when BTC had hit $13,000, and now when BTC price is around $7,200 price area, XLM is at $0.055. The least recorded trading price in 6 months, creating a double bottom, is $0.05258. Having made a failed attempt to rise initially in the previous month above $0.090, Stellar trades with over 38% decline recorded.
Similarly, when we investigate the 30-day trading timeframe, XLM/USD is forming a declining trend only, just as it manifested in a longer time frame. The current trading area is lacking strong support since it has slid to the previously formed support. The nearest support at present is by 5-day EMA at $0.056. The downward stride is quite emphasized and swift, as noticed from the above-given chart for Stellar Lumens prediction.
Technical Indicators:
The technical indicators form a similar picture, making the selling pressure prominent as the RSI of the XLM coin is at 38.49 at the press time and is inclined to the oversold region.
The MACD of Stellar Lumens is running below zero and has a bearish crossover as the signal line seems to have overpowered the MACD line.
