A look at the Weekly chart for Stellar in logarithmic form, shows us that price has been steadily declining since breaking the $0.2 support, and the next area of support is found in the May 2017 high at $0.06.
If that does not hold, the next area of support would be between $1.5-2 (yellow rectangle).
A look at the weekly chart in non-logarithmic form gives us a similarly bearish picture.
It is worth noting that the break of support corresponded with a bearish cross in MACD (Yellow arrow), which has been steadily falling since.
MACD is at the lowest it has been in more than two years.
A look at the 3-day chart also gives us a bearish picture.
The price fell below the 200-period moving average for the first time, and it is worth keeping an eye on if the 7 and 200 period moving averages make a bearish cross (downward pointing yellow arrow).
Furthermore, the price is facing resistance from all the moving averages and the cloud. Finally, the RSI fell below 30 for the first time, but there is no developing bullish divergence.
A look at the 6-hr chart gives us a possible structure.
Price is trading in a downward channel resembling a descending wedge.
It is facing resistance from the moving averages and the cloud.
Furthermore, there is no bullish divergence developing in any of the indicators.
- Price broke the $0.2 level of support.
- The next area of support is $0.06-0.08.
- Price is moving in a short-term wedge.
Stellar [XLM]: When Will Price Hit the Bottom? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.