XLM is having a tough time finding buyers. Bulls tried keeping Stellar’s native cryptocurrency token afloat above the $0.37 support. But alas, bears took over, and the said support level has now flipped into a critical resistance level. What’s next for the XLM/USD trading pair?
XLM/USD Dips Below 200-Day SMA, Recovery Looks Bleak
The news of Stellar blockchain-based Leaf Wallet receiving equity-free investment from the UNICEF CryptoFund could have salvaged XLM’s bearish stance. But it didn’t. On June 4, bears significantly offloaded their holdings after few days of recovery rally. The resultant red candle pushed prices to the critical $0.37 support marked by the 200-day simple moving average(SMA) line.
Read More: XLM explodes as UNICEF blockchain cohort adds a Stellar-backed wallet
Bulls tried attempting a recovery 2 days later on June 6 but failed when bearish momentum took over gain pushing prices below the aforementioned support. As a result, the $0.37 price level has now turned into a critical resistance level for bulls. Which as per the current scenario of overpowering selling pressure looks insurmountable.
If the bearish price action continues (like it has for the past few days), the Stellar coin could dip further and test the next support level near the $0.28 price level (300-day SMA). Corrections beyond the same will unleash pure mayhem.
What Options Do Bulls Have?
As mentioned earlier, bulls have to work in unison to negate the selling pressure and push XLM prices to the $0.37 resistance and flip it back into resistance. This looks possible since bears are losing steam, and selling pressure is dying out.
Read More: Stellar Eyes Strong Rebound This Weekend as XLM Tests Dependable Support Range
The diminishing negative area under the MACD (Moving Average Convergence Divergence) indicator confirms this. A bullish crossover could follow on account of renewed buying activity which could signal more bulls to join the race.
If buying pressure sustains after converting $0.37 back to support, bulls could aim for the next resistance level near the $0.44 price mark, which was lost after the selloff resumed on June 4.
If buying action pushes Stellar’s cryptocurrency token past the $0.44 then a retest of the “50-cent” price level will become quite possible.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
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