Welcome to Cryptocointrade - Your #1 Crypto Trading Guide.

Stellar Lumens - Techincal Analysis

Introduction

Currently ranked eighth crypto by market capitalization according to coinmarket.com is Stellar Lumen. The altcoin joined the bandwagon of cryptocurrencies that suffered a beat during the crypto winter of 2018. Last month, the Stellar road map for 2019 was released with a focus on Horizon, Stellar Core, Products, Ecosystem, and Organization.  Come along as we analyzed the critical price action patterns and their significant support and resistance levels.

Technical Analysis

XLMUSD: Monthly Chart

Technical Analysis - XLMUSD Monthly Chart

Stellar Lumen (XLM) shows no sign of price recovery on the higher monthly chart, after closing bearish on February.  We notice price rejection at 1.0474633 following a bearish engulfing pattern on February 2018. On November 2018, another breakdown of hidden bullish pressure stressed a bearish descent, setting up strong resistance at 0.2883397 and 0.410375.

XLMUSD: Weekly Chart

Technical Analysis - XLMUSD Weekly Chart

Let’s take a look at the weekly chart. You’ll notice that the bearish trend was pronounced by a bearish accumulation pattern on January 15, 2018, which was later followed by a bearish hidden divergence on November 19, 2018, as a continuation of the bearish trend.

XLMUSD: Daily Chart

Technical Analysis - XLMUSD Daily Chart

The above daily chart emphasizes the high and low swings created by bullish and bearish divergence patterns on December 17, 2018, and December 25, 2018. A further advance to February 24, 2019, the bearish trend was finally confirmed by a breakdown of bullish accumulation and a bearish divergence pattern.

XLMUSD: 4-HOUR Chart

Technical Analysis - XLMUSD 4 Hour Chart

Here we see a bullish regular divergence pattern triggered on February 14 ’19, being the first sign of a price recovery for Lumens. The divergence pattern was triggered simultaneously with a bullish accumulation pattern, pushing the pair above the MA-65.

The price gently corrects using the MA-65 as support and finally breaking out of a bearish accumulation pattern as confirmation on February 17 ’19. After such a huge price gain from the bullish trend, an opposite bearish divergence pattern sends the price crashing down again with support at 0.816180.

XLMUSD: 2-HOUR Chart

Technical Analysis - XLMUSD 2 Hour Chart

A breakdown of hidden bullish accumulation on 24 February ’19 sends price crashing through the 65-period Moving Average. The sudden price plummet was later followed by a price recoil back to the MA-65 and later signaled a bearish hidden divergence on 26 February ’19. This established resistance levels at 0.0878122, 0.0891086, and 0.091105.

Conclusion and Projection

Paired against the US dollar, Stellar Lumens maintains bearish sentiment on the higher monthly and weekly charts. However, following a release of their 2019 road map on February 28 ’19, we may start to see a strengthening, only time will tell.

Below is a weekly chart of the XLM paired against BTC and it shows a double bullish accumulation setup. This implies a confidence booster for Stellar and another storage option for risk-averse BTC HODLERs.

XLMBTC: Weekly Chart

Technical Analysis - XLMBTC Weekly Chart

The above chart shows a strong bearish trend with the price of Stellar Lumens Plummeting against the BTC. Starting with a dark cloud cover and bearish accumulation pattern on 16 and 26 of November ’18 the pair came crashing down by 45.96%.

Enter 2019, we notice a buildup of bullish pressure as the chart triggers a consecutive bullish accumulation pattern on the 18 and 25 of February ’19.

To finish, we have other Technical Analysis or Fundamental Analysis that might be interesting to read for your further knowledge.

Read More From This Month: Technical Analysis of Litecoin (LTC) for March 2019

or

Technical Analysis of BNBUSDT for March 2019

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn

Signup for news & special offers!

Close Menu