Stellar price has recouped some of its losses from the previous week, even as it remains on a downtrend. While it will likely record some gains in the ensuing sessions, the bears will remain in control. For a trend reversal, the bulls need to gather enough momentum to push the altcoin past the crucial level of $0.3755.
XLM has eased after rebounding for two consecutive sessions. After hitting an intraday low of 0.3016 on Sunday, the altcoin has risen by about 14%. At the time of writing, it was up by 2.3% at 0.3436.
On a two-hour chart, Stellar price is trading above the 50 and 200-day exponential moving averages. Notably, it surged above the long-term EMA on Tuesday after trading below it for about two weeks.
In the short term, I expect the altcoin to find support along the 200-day EMA at 0.3406. Below that zone, the support may be along the 50-day EMA at 0.3321.
On the flip side, Stellar price may rise to find resistance along the psychologically crucial zone of 0.3500. Above that mark, bulls will likely be eyeing November’s key resistance level of 0.3593.
For a trend reversal to be apparent, bulls need to push the price above 0.3755, which is the point at which the death cross occurred. The formation occurs when the long term 200-day EMA crosses over the 50-day EMA to the upside. Such a setup usually signals a downtrend.
This post was last modified on %s = human-readable time difference 09:10