STELLAR PRICE ANALYSIS & PREDICTION (March 14) – XLM Slowly Reaches Oversold, But Long-Term Move May Trigger Further Losses
Advancing bearish over the past week, XLM lost chunks of dollars and tested a key price level yesterday. Following a slight bounce, it trades calmly as it holds this level as support while deciding the next move.
During the last leg down, XLM posted significant losses and reached an oversold zone from a short-term perspective. Although that could just be the start if the price continues to dip in the long term.
As we can see, its bearish pattern – the lower low and lower high move – is slowly becoming smaller by the week. Technically, the impulsive wave appears weaker compared to when it started to fall from the peak level of $0.65 last November. This indicates an exhaustion in the bearish pattern as it might come to an end soon.
On the other hand, the pattern reveals that the asset is undergoing a serious contraction phase on the weekly chart. An expansion of such a phase could cause major havoc as the price may further plummet in the future. While this suggests more potential crash, the price may reach the $0.1 level before regaining momentum in the mid-term.
Meanwhile, the bleeding has temporarily stopped as the $0.22 level produced support yesterday. We can anticipate a short recovery before mounting pressure. But if the bulls show strong commitment amid rising demand, XLM is likely to shift the trend. From a technical standpoint, the bears are not finished yet.
XLM’s Key Level To Watch
In the next leg down, the potential support to keep an eye on is $0.227, along with the $0.189 level. Flipping through all these levels, $0.15 is the next support to pay attention to.
A recovery from the current trading level could bring us back to $0.3 before resuming bearish. There’s also resistance at $0.376 and $0.41 in case of a reversal.
Key Resistance Levels: $0.3, $0.376, $0.41
Key Support Levels: $0.227, $0.189, $0.15
- Spot Price: $0.256
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
