Despite a strong recovery from last week’s low, the Stellar Lumens price looks vulnerable to another trip to $0.2000. Following Fed Chair Jerome Powell telling the market on Thursday he has no plans to ban cryptocurrencies, XLM extended its four-day gains to 28%. However, this morning Stellar (XLM) is down 4.5% and almost 8.5% below Saturdays high. Furthermore, the support of the 100-day moving average is about to fall.
Over the weekend, Bitcoin (BTC) traded to $49,300, recovering last week’s decline and paring the loss from Septembers $52,900 high to 7.5%. However, at Saturdays $0.3265 peak, XLM was still 25% below the September high. Furthermore, BTC has pulled back to $47,500, which may have prove fatal for the Stellar Lumens price.
XLM price Forecast
The daily chart shows, the recent rally gathered pace after XLM cleared the 100-day moving average at $0.3007. However, the extension higher was rejected at the 50-day average at $0.3299. Therefore, the 50 DMA is the first obstacle the bulls must clear. Conversely, the 100 DMA is the first level of support. Currently XLM is grappling with the 100 DMA and must close above the indicator to stave off further losses.
If Stellar closes below the 100 DMA today I expect the price to extend to Thursdays’s $0.2550 low. Furthermore, if Bitcoin continues to slide, XLM could exceed $0.2550 and drop to the July lows around $0.2000. However, if BTC climbs above $50k it should encourage XLM to advance past the 50 DMA. In that event, the bearish thesis becomes invalid.
Stellar Lumens Price Chart (Daily)
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