Stellar Lumens / USD Technical Analysis: Stuck On The Ground
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- Stellar Lumen has a bullish short-term outlook with the four-hour time frame showing a valid inverted head and shoulders pattern
- Bullish MACD divergence is also seen on the four-hour time frame
- The XLM / USD pair’s medium-term outlook is bearish with the daily time frame showing the cryptocurrency trading within a descending price channel
Stellar Lumen / USD Short-term price analysis
In the short-term, Stellar Lumen has a bullish bias with the cryptocurrency still maintaining bullish momentum above its 200-period moving average on the four-hour time horizon. Trading action has recently been sideways, with buyers and sellers locked in a battle for near-term control of the XLM / USD pair.
The four-hour time frame also shows a sizeable amount of bullish MACD price divergence spanning back to the first month of 2019. The mentioned time frame also shows a valid inverted head and shoulders pattern.
XLM / USD H4 Chart (Source: TradingView)
Pattern Watch
Traders should note that a bearish head and shoulders pattern will form if the XLM / USD pair starts to fall back towards the worst levels of last month.
MACD Indicator
The MACD indicator is currently neutral on the four-hour time frame, which is largely in line with the recent sideways trading action.
Relative Strength Index
The RSI indicator has a slight bearish bias on the four-hour time frame, with the indicator showing a bearish head and shoulders pattern forming.
Stellar Lumen / USD Medium-term price analysis
Stellar Lumen remains bearish over the medium-time frame, with XLM / USD pair trading below its trend defining 200-day moving average since December of last year.
The daily time frame shows the XLM / USD pair trading within the middle of a descending price channel; traders should note that descending price channels are typically bearish and are usually continuation patterns of the previously established trend.
Technical indicators on the daily time frame are largely consistent with price and suggest that the XLM / USD pair is likely to stay in range bound mode until a major technical breakout occurs.
XLM / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should watch for the potential technical tests of the upper or lower trendlines of the previously mentioned descending price channel.
MACD Indicator
The MACD indicator is currently flatlined on the daily time frame and providing no clear trading signal.
Relative Strength Indicator
The RSI indicator is also flatlined on the daily time frame and is holding around the neutral line.
Conclusion
Stellar Lumen retains a bullish bias in the short-term, with the MACD price divergence on the four-hour time frame suggesting that the next strong directional move could be to the upside.
Traders should note that there are currently few reasons to be bullish towards the XLM / USD pair over the medium-term, until a sustained break above the cryptocurrency’s 200-day moving average has occurred.
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