- Stellar price has crashed significantly since December 17, following the SEC going after XRP.
- XLM bulls need to defend a crucial support level to come back.
XLM had an insane run towards $0.231 from a low of $0.083, just two weeks before. Unfortunately, the digital asset suffered a significant correction and plummeted harder when the SEC announced it would sue Ripple because it considers XRP a security.
Stellar price can recover but needs to stay above this level
On the 12-hour chart, Stellar has lost its recent uptrend and dipped below the 50-SMA support level. So far, bulls have been able to somewhat defend the 100-SMA level at $0.147. Stellar price is currently trading at $0.148 just above the critical support level.
XLM/USD 12-hour chart
If the bulls can hold the 100-SMA level decisively and see a breakout above the 50-SMA at $0.164, they would confirm a 12-hour uptrend, shifting the odds in their favor. The potential bullish price target after conquering the 50-SMA would be $0.21.
XLM/USD 12-hour chart
However, as stated above, bulls must absolutely defend the 100-SMA level, otherwise, Stellar price is at risk of falling towards the last low on December 23 at $0.11 and down to the psychological level at $0.1 as there is very little support to the downside.
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