Since Stellar (XLM) lost the $0.3 resistance (previous support), the alt has fallen rapidly towards its long-term support at the $0.16 level.
From here, any close above $0.1737 would open gates for a recovery to the 20 EMA (red). Post that, a collision between the buyers and sellers at the $0.177 level would likely be before XLM sees a slight pullback. At the time of writing, the alt was trading at $0.173, down 2.13% in the past 24 hours.
XLM 4 Hour Chart
Source: TradingView, XLM/USD
As XLM sank below USD 0.3, it reversed and traded between the USD 0.16-$0.29 range for more than three months. The recent bearish phase marked two down channels as the alt lost nearly 37.23% (as of February 8) and hit its 13-month low on February 24.
During this phase, the price dropped below the 20-50 EMA and struggled to find a sustainable close above them. The decline stopped at the 14-month support ($0.16), where buyers stepped in to start a 24.6% recovery.
While the bears refrained from giving the bulls a free hand at $0.29, XLM retested the $0.169. From this level, however, the alt saw an inverted bullish hammer as the bulls tried to revive.
With recent gains and buyers trying to build pressure near the down channel’s upper trendline (yellow), a close above the pattern would brace XLM for a $0.177 retest. If the number of buyers dwindles, it is likely that the immediate support will need to be retested before a strong recovery can occur.
rode
The bearish RSI revived itself from the oversold mark trying to topple its trendline resistance. Any close above this line would find a barrier near the 40 mark. Post that, the recovery could be much faster.
In addition, the MACD continued to skew in favor of bears and had yet to find a close above its equilibrium. A bullish crossover on its lines could be a potential trigger for the bulls.
Conclusion
Taking into account the bullish candlestick pattern and ease of selling influence, XLM could see a rebound in the near term. In addition, the investors/traders need to consider the broader market sentiment and the developments in the chain in order to make a profitable move.
This post XLM could see a rebound in the near term based on these key levels
was published first on https://ambcrypto.com/xlm-could-see-a-near-term-revival-based-on-these-key-levels/
