- Stellar price analysis highlights XLM’s bullish momentum exhaustion.
- The bullish momentum fatigue is leading Stellar towards a potential retracement.
- The resurfacing of buyers at the recent swing could trigger another bull run measuring 30%.
- If Stellar breaches the $0.298 support level, a bearish narrative might emerge.
Yesterday was a fairly good day for Stellar Lumens, like many other cryptocurrencies in the market. However, due to the emergence of red candlesticks on the 24-hour price chart, buying pressure exhaustion seems obvious. Due to this development, Stellar could slice break down to retest its recent swing low or move towards its immediate support line.
Stellar Price Analysis: General price overview
Between June 8 and June 10, the Stellar price movement registered an 18 percent price rally. The surge came at a time Stellar was suffering from the effects of a massive price-down surge. That is why market participants appear eager to either sell the crypto coin or book for profits, an action likely to lead to a pullback.
The price-down surge will likely push the crypto asset towards its $0.334 immediate support line or collect liquidity below its $0.324 swing low. Collecting liquidity will avail investors an extra push that could see Stellar surge by 24 percent towards its 50 percent Fibo retracement level. At present, Stellar’s 50 percent Fibo retracement level coincides with $0.403. Despite this projection, Stellar bulls could run towards $0.435, marking a 30 percent uptick from the current $0.33 price value. If this happens, XLM could hit the $0.46 price level, which coincides with the 79 percent Fibo retracement level.
Stellar price movement in the past 24 hours
During Wednesday’s trading session, Stellar appreciated 5 percent following a 1 percent surge on Tuesday. During Tuesday’s trading session, the crypto coin ended the day at $0.3653. As for today’s trading session, Stellar began the day on a bearish start, taking a dip to record an intraday low of $0.3245 before bouncing back.
Avoiding the first major support level at $0.321 and the 62 percent Fibo retracement level at $0.322, Stellar’s price movement surged to a late intraday high of $0.37. According to the 24-hour chart, it is clear XLM bypassed the $0.36 resistance level before retracting back to its current buying price. Stellar is down by about 2 percent when writing, leaving significant support and resistance levels untouched.
Stellar 4-hour chart
While Stellar is currently bearish on the 4-hour chart, an upsurge seems likely after the crypto coin finds a steady support ground. However, now that the crypto coin has broken down past the $0.35 mark, further price declines are apparent.
If Stellar proceeds with its downward trend, the crypto is likely to form a 4-hour candlestick close below the $0.3 support line. This will invalidate all the bullish narratives. If this transpired, XLM could register an 8 percent decline to hit the range low at $0.27.
Like all cryptocurrencies, Stellar bulls have the power to accumulate more holding and restart the bullish momentum. If Stellar pulls a decisive close above $0.35, it will be on the right track towards the $0.40 price mark by the end of the week.