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XLM / USD Price Analysis: Strong Technical Test

The recent bearish breakout doesn't help an already neutral trend, subjecting the pair to even more pressure.

XLM Price Stellar Lumens Technical Analysis

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  • Stellar Lumen has a bearish short-term trading bias, with the cryptocurrency trading below its 200-period moving average
  • The four-hour time frame shows a large head and shoulders pattern
  • The daily time frame is showing a bullish inverted head and shoulders pattern

XLM / USD Short-term price analysis

Stellar Lumen has a bearish short-term trading bias, with the cryptocurrency now trading below its key 200-period moving average on the four-hour time frame.

The four-hour time frame is showing that price is quickly approaching the neckline of a head and shoulders pattern, with the bearish pattern holding a sizeable downside projection.

Technical indicators are bearish on the four-hour time frame and highlight that downside selling pressure is increasing over the short-term.

XLM H4 Chart April 24, powered by Trading ViewXLM / USD H4 Chart by TradingView

Pattern Watch

Traders should note that a much larger head and shoulders pattern could take shape if the XLM / USD pair continues to decline.

Relative Strength Index

The RSI indicator is bearish on the four-hour time frame, although it is approaching oversold territory.

MACD Indicator

The MACD indicator is bearish on the four-hour time frame and is currently generating a strong sell signal.


XLM / USD Medium-term price analysis

Stellar Lumen has a neutral trading bias over the medium time frame, with the XLM / USD pair still unable to move above its 200-day moving average.

The early-month rally has created a large inverted head and shoulders pattern on the daily time frame, with the bullish pattern still valid despite the XLM / USD pair’s recent decline.

Technical indicators on the daily time frame are turning lower and also show scope for further downside.

XLM Daily Chart April 24XLM / USD Daily Chart by TradingView

Pattern Watch

Traders should note that the November 22nd swing-high is the overall target of the bullish inverted head and shoulders pattern on the daily time frame.

Relative Strength Index

The RSI indicator has turned bearish on the daily time frame and shows scope for further losses.

MACD Indicator

The MACD indicator is bearish on the daily time frame and is currently generating a sell signal.


Conclusion

Stellar Lumen is facing a strong technical test in the short-term, with the bearish head and shoulders pattern on the four-hour time creating heavy technical selling pressure.

The XLM / USD pair faces further medium-term losses, unless buyers take back control of price action and ignite the bullish inverted head and shoulders pattern on the daily time frame.

Check out our coin guide for XLM.

Our analyst team covered Stellar, offering a deep look into the project.

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