- Stellar price struggles to achieve a decisive breakout above the 200-day SMA.
- XLM faces the $0.340 and $0.378 major resistances ahead.
- At the moment, Stellar is consolidating at $0.33 with a slight bullish bias.
The Stellar price is trading at $0.3358 with a slight bullish bias as bulls struggle to breakout from the sluggish market action experienced over the last couple of days. After Tuesday’s flash crypto market crash, Stellar lost approximately 20% to close the day just above $0.334. At some point XLM lost as much as 35% dropping to lows of about $0.275.
The crash allowed investors to come on board as they bought the dip pushing the Stellar back above $0.33. Since then, XLM’s price has been hovering in a tight price range between $ $0.3343 and $0.3063.
Stellar Price Needs To Overcome The 200 SMA For An Upward Breakout
XLM/USD price has been underpinned by the 200-day Simple Moving Average (SMA) since August 14. Stellar made the only meaning push past this dynamic barrier on September 05 before the September 07 cryptocurrency market flash crash pulled the asset back below the 200-day SMA. At the moment, the international payments token is struggling to hold above $0.33 and could slide below to tag the 50-day SMA at $0.321 or the 100-day SMA $0.305.
Note that the negative parabolic SAR and the movement of the Moving Average Convergence Divergence (MACD) indicator line (blue) below the signal line (orange) validate this bearish thesis. The MACD sent a sell crypto signal when the MACD line crossed below the signal line.
XLM/USD Daily Chart
Even though it appears that the bears are currently overpowering the bulls in determining the short-term direction of the Stellar price, buyers can be patient and watch out for several key levels that a bullish breakout.
If the current bullish price action can gain momentum to push XLM price to close the day above the 200-day SMA at $0.3931, then it means that a decisive bullish breakout will have been confirmed. But first, bulls must overcome the $0.340 resistance level before having a go at the 200-day SMA.
Slicing through the July rising trend line at $0.378 will be another major hurdle for Stellar bulls, after which the bullish momentum will increase to push XLM price above $0.40.
At the moment, the horizontal movement of the RSI is an indication that Stellar might continue consolidating in the short-term.
How To Buy XLM
If you want to trade Stellar, you can do so on eToro. eToro is one of the most trusted exchange platforms in the crypto space. eToro supports copy trading, which allows new traders to learn from market experts. eToro also charges low trading fees and commissions.
Looking to buy or trade Stellar now? Invest at eToro!
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Nancy Lubale
