Continuation of the bears’ pressure will lead to the penetration of the demand level of $0.10 in which the previous low ($0.09 price level) will be the target of Stellar price. Only when the $0.10 price level hold that will make the coin rally to the north.
A close of a big bullish candle above the $0.12 or a clear penetration of a bearish candle below it is expected, should there be a breach below $0.10, wait for the Stellar pullback and place sell position with taking profit at $0.09.
The first candle formed at the opening of the market on the daily chart is bearish, broken the supply level of $0.12 downside indicating a probability that Stellar will resume its bearish trend which may have its support at the previous low of $0.09.
Should the bulls increase its momentum and breakout at the supply level of $0.15 Stellar traders can place a long position trade setup.
A breakdown at the demand level of $0.09 may be a short position with good candle pattern as confirmation for entries. Traders are advised to be patient before taking any position.
The strong demand level of $0.13 was broken downside last week and Stellar price may have its low at the demand level of $0.10 as more strong bearish candles are forming which indicates that bears’ pressure is increasing.
In case the bulls gain enough momentum to break up the supply level of $0.17, Stellar will rally to the north and have its target at the $0.20 price level. Should the supply level of $0.17 holds XLM will have its low at $0.10 price level.
In case the demand level of $0.19 holds the Stellar price may bounce and the bulls may reverse the trend.
The strong bearish candle that broke down the demand levels of $0.25 and $0.23 and closed below the dynamic support and resistance is an indication that downtrend movements in Stellar price may continue.