Stellar (XLM) Price Analysis: Trends of September 20–26, 2018

XLM is ranging within the supply level of $0.21 of the upper range and the demand level of $0.18 of the lower range, the price may break out from the channel that will lead to decreases in the rates.

Photo: Shutterstock

Photo: Shutterstock

Key Highlights:

  • Ranging within the channel may continue;
  • there is a possibility of an increase in price towards the Supply level at 0.24;
  • traders should be patient and watch out for the breakout.

XLM/USD Long-term Trend: Ranging

Supply levels: $0.21, $0.24, $0.30
Demand levels: $0.18, $0.17, $0.15The coin is still trading within the supply level of $0.21 of the upper range and the demand level of $0.18 of the lower range since last week. The cryptocurrency continues consolidating within the channel. Last week, the bears were unable to break out the demand level of $0.18. The bearish momentum gradually weakened as the bears have no power to drive past the demand level of $0.18. The price was pushed up towards the supply level of $0.21. The bulls gradually gained momentum as the bears’ pressure decreases and pushed the price above the 4-day EMA.

The MACD indicator is below zero level with its signal lines interlocked to each other. It suggests that the consolidation of the price within a range may continue temporarily. Should the price breakout and close below demand level of $0.18, the price would be exposed to the demand level of $0.17.The price may break out from the upper channel that will lead to an increase in the rates as the MACD is at oversold level.

XLM/USD Price Medium-term Trend: Ranging

The Stella continues in a bearish trend in the medium-term outlook. It also continued ranging within the channel on the 4H chart last week. The bears could not break the demand level of $0.8 as their momentum gradually fades. The bulls’ pressure pushed price up toward the supply level of $0.21 due to the formation of bullish engulfing candles in the medium term, which means that bulls were taking control gradually.

As at present, the price is consolidating between the supply level of $0.21 and demand level of $0.18, the price will have to break the supply level of $0.21 for the uptrend movement occurrence and this will expose it to another supply level of $0.24. The 4-day EMA is about to cross the 50-day EMA downside, the price is below 4-day EMA with MACD above zero and its signal lines interlocked, which indicates the possibility of further consolidation.

Traders should be patient before taking a position to allow for either a breakout to the upside for a long position or a breakdown to the downside for a short position.

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