As we can see, Stellar broke its long-standing support line (Since March 2018) and is currently free falling without a solid structure in place. The next support area is formed by the May 2017 high, between $0.06 and $0.08.
A closer look at the weekly indicators shows that the RSI fell below 40 for the first time since 2015 (yellow dashed line). Furthermore, the MACD made a bearish cross and is currently falling down in a steep line, giving support to the scenario laid out above, in which we fall until $0.06-0.08.
A look at the daily chart paints a similar bearish picture. The price is below all the moving averages (7, 21, 50 and 200 Day) and broke its support line. Furthermore, while the RSI is currently at 20, indicating oversold conditions, there is no bullish divergence, since both the price and the RSI line have been falling. Finally, the MACD rejected a bullish cross and is headed down.
The short-term (4hr) outlook gives us a more positive picture. Price is stuck in a descending wedge, and there is a bullish divergence in the RSI. However, due to the extremely bearish long-term outlook, it is not very likely that this is the reversal area since price can break down the wedge and continue its freefall.
• Stellar broke its long-standing support and is currently falling sharply.
• The likely reversal area is formed by the 2017 high at $0.06-$0.08.
• Long-term indicators are bearish, and the price is below the 7, 21, 50 and 200-day moving averages.
Stellar [XLM]: Price Broke Support; Where Is It Heading Next? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.