The bears have to gain enough pressure in order to break down the demand level of $0.07 that will expose Stellar price to the low level of $0.06. Increase in the bulls’ pressure will break up the $0.09 supply level and the coin may target $0.12 price level.
Downtrend will continue in case the bears were able to break down the demand level of $0.07, then, Stellar price will have its low at $0.06 price level. On the other hand, should the demand level of $0.07 holds the bulls may take over the XLM market.
In case the bulls defend the demand level of $0.07 and increase their momentum, there will be a change of trend to the north side and Stellar price may incline towards $0.10 supply level. If not downtrend continues.
Further increase of the bears’ pressure may push the coin to its previous low and in case the bulls defend this level of $0.09 Stellar price may have its resistance at $0.13 price level.
In case the bears exert more pressure on the Stellar price and the demand level of $0.10 does not hold the coin will fall and may have its support at $0.09 – $0.06.
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.