With most of the altcoins reverting to their crucial support levels, the XLM price is back at the $0.11 demand zone. The demand zone is in confluence with the 200-day EMA to provide extra cushion to the Stellar Lumens price.
However, the recent spike in the incoming supply puts a big dent in the demand zone. It is evident by the sideways trend in XLM price rather than the previous sharp reversals.
With the recent 17% pullback from the resistance trendline dropping the XLM price to the $0.11 zone, the price trend goes sideways. The low range movement in the Stellar Lumens price shows a lack of bullish momentum to revert the price trend.
Moreover, the market price crosses under the crucial 200-day EMA, increasing the likelihood of a death cross. Nevertheless, the confirmation signal will remain the breakdown of the demand zone.
Currently, the XLM price is trading at $0.112 with an intraday gain of 0.37%, displaying a bullish attempt to avoid a breakdown.
Technical pointers:
RSI: With price movement taking a slow route, the daily RSI line is declining gradually to approach the oversold zone. This projects a weakness in the bullish momentum.
MACD: The MACD and signal lines are struggling to attempt a bullish crossover as the bearish histograms are ready to resurface.
What’s Next For Stellar (XLM) Price?
At present, the XLM price trend is at a crossroads as it hangs by a thread at $0.11. The recent pullback puts immense bearish pressure that makes the bearish breakdown seem inevitable.
With high hopes of sellers, the XLM price may drop to the $0.096 support level, accounting for a 13% decline. On the flip side, a bullish reversal will challenge the overhead resistance trendline.
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