Stellar Lumens has recorded a very modest recovery after yesterday’s steep slide, triggered by Evergrande’s liquidity crisis and resultant market contagion.
The broad-based selloff saw XLM give up 9.94% of its value as bears broke down the 0.3112 support level. This move triggered an uptick in bearish XLM price prediction bets. Still, with today’s broad-based market recovery, the bears on XLM are finding it hard to fulfil additional bearish expectations.
So far, the support at 0.2755 (23 May and 7 September lows) appears to be holding up. Subsequent price moves will depend on how the daily candle resting on the 0.2755 support ends on the day, as defined in the price outlook below.
The XLM/USD pair has located support the 0.2755 price mark, and the daily candle has formed a doji. A doji candle and a resultant bullish candle forms a morning star pattern, which validates any bullish XLM price predictions for a push towards 0.3112. . If the price advances beyond this barrier, 0.3690 forms another resistance level. The most recent high at 0.4334 completes the near-term upside targets for bulls.
Conversely, we could see a negation of this outlook if the XLM price pushes below the 0.2755 support. This move automatically makes 0.2311 the next target of note for bears and also brings the 22 June/2 July lows at 0.1986 into the picture.
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