XLM / USD Technical Analysis: Bears Are Still Roaring
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- Stellar Lumen remains bearish in the short-term with price continuing to decline
- Bearish head and shoulders pattern is still very much in play in the short-term
- The Medium-term picture for Stellar also appears bearish
XLM / USD Short-term price analysis
In the short-term, the XLM / USD pair is bearish, with price trading below a bearish head and shoulders pattern. Price-action is also bearish, with the XLM / USD pair now grinding towards the December 2018 trading low.
The RSI indicator continues to decline, while the price is below all the key moving averages over the four-hour time frame.
The XLM / USD pair currently offers traders and investors few reasons to be bullish in the short-term, with technical indicators showing no clear signs of an immediate turnaround.
Pattern Watch
An eventual decline towards the December 2018 trading low would create an even larger head and shoulders pattern. This scenario currently appears to be more favorable than the XLM / USD pair, thus creating a bullish double-bottom pattern formation.
(Source: TradingView)
Key Moving Averages
The XLM / USD pair trades under all the key moving averages and is currently creating greater distance between the price and the 50 and 200-period moving averages on the four-hour time frame.
MACD & Volume
The MACD indicator on the four-hour time frame is trading slightly in negative territory and is consistent with the price movement.
XLM / USD Medium-term price analysis
In the medium-term, the XLM / USD pair appears overwhelmingly bearish. It is apparent that Stellar Lumens could continue to trade lower, in spite of heavy losses already incurred during late 2018.
Full projection of the bearish head and shoulders pattern seen on the higher time frame charts has yet to fully play out, which again is bad news for medium to longer-term XLM / USD bulls.
The price has been unable to rally above the XLM / USD pair’s 50-day moving average since late November, which really highlights the scale of negative sentiment and technical selling towards Stellar Lumens.
(Source: TradingView)
Pattern Watch
Similar to the short-term time horizon, the only real saving grace for the XLM / USD pair could be a formation of the double-bottom pattern over the medium-term, which may inspire a rally towards the December 2018 trading high.
Key Moving Averages
Stellar Lumen trades below its 50,100 and 200-day moving averages, with a bearish Death Cross underway on the daily time frame.
MACD And Volume
The Daily MACD indicator is currently inconclusive and providing no clear signal, overall trading volume has been fairly mixed so far this year.
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