in , ,

XLM/USD & EUR Price Analysis: April 24 Rapid Drop


At Beittabi, we publish regular price analyses and predictions for various cryptoassets. In our Apr 22 analysis of Stellar lumens (XLM), we predicted the price would increase. Our prediction was invalidated on Apr 24 when the price broke down from the channel we have defined below. To learn more, read our latest XLM/USD($) and XLM/EUR(€) analysis below:

On Apr 18, the price of XLM reached a high of $0.12 and €0.106. It has been gradually decreasing since. The decrease intensified on Apr 24.

XLM/USD & XLM/EUR Prices: Apr 18 – Apr 24

Will the price of Stellar lumens continue to decrease or should we expect a reversal soon?

Let’s find out:

Stellar Lumens (XLM): Highlights for April 24, 2019

  • The price of Stellar lumens has been on a downtrend since Apr 18.
  • XLM is following a descending resistance line.
  • The 10- and 20-day moving averages have made a bearish cross.
  • There is support near $0.1 and €0.085.

Current Trading Pattern for Stellar Lumens

In this section, we analyze the price of XLM/USD at one-hour intervals from Apr 18 to Apr 24 to trace the current trading pattern. In order to avoid confusion, we will not be using images of the XLM/EUR pair until the summary, where the relevant resistance and support areas will be shown in dollars and euros.

On Apr 18, the price reached a high of $0.121. A downtrend ensued and the price has reached several lower highs.

Tracing these highs gives us a descending resistance line:

There is no visible support line. In order to try and predict price movements, we need to take a look at a longer time-frame and incorporate technical indicators.

Technical Indicators

In this section, we will analyze the price of XLM/USD is analyzed at one-day intervals from Feb 11 to Apr 24 alongside moving averages.

Moving averages are tools used in technical analysis to smooth out price action. It is a lagging indicator since it is based on past prices. The relationship between short and long-term moving averages can help in identifying the beginning and end of a trend.

The 10-, 20- and 100-day MAs are shown in the graph below:

On Apr 17, the 10-day MA crossed below the 20-day MA. This might indicate that a new downtrend will begin. The downtrend began on Apr 18.

The price is trading above the 100-day moving average, which is currently at $0.1. This coincides with one support area which we will define in the following section.

The use of these indicators suggests that the price will decrease towards the 100-day moving average.

Reversal Areas

To determine the actual possible future price levels, we incorporate support areas into the analysis.

Support areas are created when the price visits the same level several times. If a breakdown occurs, they can create possible areas of reversal.
These are shown in the graph below for both XLM/USD and XLM/EUR:
XLM/USD
XLM/EUR

The closest support area is found near $0.1 and €0.085. This coincides with the 100-day moving average outlined in the previous section. We believe the price will eventually reach this area.

This is a very significant support area, therefore we do not believe it will be broken soon.

Summary of Analysis

Based on this analysis, the price of Stellar lumens is likely to decrease towards the support area we have outlined above. Lows around $0.1 and €0.085 may be reached in the near future.

Do you think the price of XLM will begin a reversal? Let us know in the comments.

If you’re interested in Stellar lumens price predictions for 2019 and 2020, click on the green button below:

LONG-TERM XLM/USD ANALYSIS

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

What do you think?

256 points
Upvote Downvote

Written by Ravi

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

Comments

0 comments

Portland State University researchers Develop Blockchain Protocol to Fight Counterfeit Pharmaceuticals

BCH/USD & EUR Price Analysis: April 24 facing Bear