- XLM/USD has been range-bound after a sharp sell-off on Thursday.
- Strong resistance at $0.06 might stop the recovery.
Stellar (XLM) has been under pressure lately losing nearly 24 of its value in recent seven days. At the time of writing, XLM/USD is changing hands at $0.0584, off the recent low touched at $0.537. The coin has been moving in sync with the broader market gripped by bearish sentiments and panic selling. Stellar is the tenth largest cryptocurrency with the current market value of $1.18 billion and an average daily trading volume about $300 million.
Stellar’s technical picture
XLM/USD has been moving in a tight range limited by SMA50 (Simple Moving Average) one-hour at $0.0570 on the downside and SMA100 one hour at $0.0600 on the upside. While the coin has recovered from Thursday’s low of $0.0537, the bears are still in controlas long as tthe price staysl below $0.0600. We will need to see a sustainable move above this handle for the upside to gain traction with the next focus on SMA200 one hour at $0.0680 followed by psychological $0.0700.
On the downside, once the above-mentioned SMA50 is broken, the sell-off may be extended towards the lower line of one-hour Bollinger Band at $0.0550 and to the recent low of $0.0537. The critical support is created by psychological $0.0500.
XLM/USD, the one-hour chart
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