By
Mayowa Adebajo
April 26th, 2024
The cryptocurrency made some faint bullish effort that was often followed by consolidation in the market and that led to the formation of “falling wedge” pattern; this may lead to increases in the rate.
Key Highlights:
- There is a consolidation pattern;
- we may expect the price to break out towards Northside, which may happen anytime;
- trader are advised to expect a clear signal to enter the market.
XLM/USD Long-term Trend: Bearish
Resistance levels: $0.24, $0.30, $0.36
Support levels: $0.19, $0.17, $0.15
Stellar continual bearish movements broke the resistance level of $0.25. It reached the support level of $0.19 last week. The coin pulled back to retest the former resistance level of $0.25 on the daily chart. The cryptocurrency made some faint bullish effort that was often followed by consolidation in the market and that led to the formation of “falling wedge” pattern. In the near future, we may expect price break out from the wedge that will lead to increases in the rates to the resistance level at $0.24.
On the daily chart, MACD indicator is at the zero level with its signal lines twisted to each other, which indicates that the price is consolidating within a range. This does not rule out a possibility of a surge in price towards the resistance level at 0.24.
XLM/USD Price Medium-term Trend: Bearish
The XLM/USD price bounced from the support level of $0.19 and the bulls pushed it to the resistance level of $0.25, after which strong bearish candles were formed on 4H chart, which means that bears want to take control. That does not mean that the price cannot bounce above the level at $0.24
.There is a need for price to go above the resistance levels at $0.24 and $0.30 for a bullish bias to form. The support levels at 0.19 and 0.170 stand to be tested, and that may require a strong bearish effort. Traders are advised to expect a clear signal to enter the market.