Introduction Technical Analysis of Stellar (XLM) April
Stellar Lumen at press time is ranked the ninth altcoin by market capitalization according to coinmarketcap.com. The price of XLM after making an all-time high of 1.0474633 on January 01st ’18, slumped by roughly 92.50% setting a new all-time low at 0.0727037.
We have a previous Technical Analysis of XLMUSD Stellar November 2018 that you might be interested in reading, besides all of our other Technical Analysis in our blog.
XLMUSD: Weekly Chart
Starting from the weekly time frame, the XLMUSD signalled a bearish hidden divergence pattern on November 19th ’18, with established resistance at 0.2883397. The divergence setup came with an increase in selling pressure in the form of a long bearish candle, then later signalled a bearish accumulation pattern on November 26th ’18.
The timing of the bullish accumulation on February 25th ’19 coincides with the golden cross of the MACD, leading to a recovery of the XLM strength.
Last month April 15th ’19, the pair signalled a bearish accumulation, which implies a weakening of the XLM, and delayed bullish rally. A continuation of the bullish trend is still feasible as the blue line of the MACD still trades above the red line.
XLMUSD: Daily Chart
An earlier confirmation to the bearish accumulation pattern shown on the Weekly chart, April 15th is illustrated on the above daily chart in the form of a bearish divergence set up. This pattern was flagged after a bullish rally that originated from a breakout of bearish accumulation resistance on March 03rd ’19.
In combination with a double bullish accumulation pattern on March 09th ’19, the XLM price surged by 52.0%
A breakdown of bullish accumulation on April 19th ’19 strengthened the bearish trend and caused the price to plummet by about 18.0% from the failure point.
XLMUSD: 4-HOUR Chart
A better and clearer support of the weekly charts on the 15th of April, the bearish accumulation pattern is the breakdown of bullish accumulation on the 3rd hour of that same day, as well as on April 18th and 20th.
The selling pressure was huge across the different time frames leading to a 19.4% decline of the XLMUSD pair.
XLMUSD: 1-HOUR Chart
The above 1hour chart illustration shows the XLM in a rollercoaster, starting with a breakdown of bullish accumulation on April 28th ’19 at 08:00, with strong resistance at 0.1050938, and 0.1040373.
The bulls were rejected on the 8th and 12th hours of April 28th as well as the 4th hour of April 29th ’19 at 04:00.
A breakout of hidden bearish accumulation on April 30th ’19 03:00 indicated a comeback of the bullish trend which soared about 8.1% before an opposite breakdown of bullish accumulation was signalled on May 01st ’19 at 03:00.
A huge price whipsaw was observed on May 03rd ’19 forming a bullish regular divergence that couldn’t climb higher as the price chart showed overbought setup as 5 consecutive bullish accumulation.
The overbought XLM gave way to selling pressure on May 03rd ’19 at 22:00 forcing the price south by 5.7%.
Critical Resistance Levels of Stellar Lumen (XLM)
0.1050938, 0.1040373, 0.1037384, 0.1034803, 0.1079776, 0.1077801,
0.1203396, 0.1194946, 0.1193529, 0.1086842
0.3602350, 0.2883397, 0.1778146, 0.1214850, 0.1397751
Critical Support Levels of Stellar Lumen Coin (XLM)
0.0994958, 0.0986090, 0.0981759, 0.1015278
0.0816180, 0.0808398, 0.0844305, 0.0945791
Conclusion and Projection
Of all the altcoins in the top 10, the Stellar Lumen coin is slow to recover from the crypto winter. The digital coin is currently correcting a bullish ascent. We’ll be on the lookout for a future breakout of bearish accumulation resistance on the daily and 4hour time frame.