Ranging within the channel may continue;
There is a possibility of an increase in price towards the Supply level at 0.24;
Traders should patient and watch out for the breakout.
XLM/USD Long-term Trend: Bearish
Supply levels: $0.21, $0.24, $0.30
Demand levels: $0.18, $0.17, $0.15
XLM/USD continues consolidating within the channel last week. The bears’ pressure was strong at the supply area of $0.24 with the formation of a large bearish engulfing candle. The price was pushed down to the demand level of $0.18. The bulls gradually lost momentum as the bears’ pressure increases and pushed the price below the 4-day EMA.
The coin is still trading within the supply level of $0.24 of the upper range and the demand level of $0.18 of the lower range. MACD indicator is below zero level with its signal lines pointing towards north. This indicates that the consolidation of the price within a range may continue temporarily this week. This does not rule out a possibility of an increase in price towards the supply level of 0.24.
A clear breakout and weekly close back below demand level of $0.18 would expose the price to the demand level of $0.17. The price may break out from the channel that will lead to decreases in the rates.
XLM/USD Price Medium-term Trend: Bearish
The Stella continued bearish in the medium-term outlook. It was ranging within the channel on the 4H chart last week. The bulls could not break the supply level of $0.21 as their momentum gradually fades. The bears’ strong pressure pushed price down to the demand level of $0.18 due to the formation of strong bearish candles in the medium term, which means that bears were in control. That does not mean that the price cannot move above the supply level of $0.24. As at present, the price is directed towards the north within the channel, the price will have to break the demand level of $0.18 for the continuation of a bearish movement and this will expose it to another demand level of $0.17.
The 4-day EMA is about to cross 50-day EMA upside, the price is above 4-day EMA which indicates the possibility of bullish movement. Traders should be patient before taking a position to allow for either a breakout to the upside for a long position or a breakdown to the downside for a short position.
Disclaimer: The views and opinions expressed here do not reflect that of Coinspeaker.com and do not constitute financial advice. Always do your own research. The charts for the analysis are provided by TradingView
The post Stellar (XLM) Price Analysis: Trends of September 13-19, 2018 appeared first on CoinSpeaker.