Stellar Token Price Analysis: XLM token price is resting at the long-term demand zone, will it bounce back?

• The XLM token price is trading near the demand zone after falling from the supply zone.
• The XLM token price is forming a falling wedge pattern over a 4-hour time frame.
• The XLM/BTC is trading at the price level of 0.0000052 with a decrease of 0.12% in the past 24 hours.

The XLM token price, as per the price action, is bullish on a lower time frame. While on a larger time frame the token price has fallen back to the demand zone. As of now, the token price is forming lower low and lower high formation in a 4-hour timeframe, which has resulted in the formation of a falling wedge pattern. As of now, on a larger time frame, the token price is consolidating. Despite the recent bearishness, the token price has managed to sustain above the demand zone. At present, the XLM token price is trading below the 50 and 109 Moving Averages. Recent bearishness in the price of XLM token price has resulted in the breakdown of the important MAs. Moving upwards the token price can be seen facing a strong reception from these MAs. The XLM token price is currently trading at the lower band of the Bollinger and after falling from the upper band. The fall in the price has triggered a death crossover between the MAs. The 14 SMA is also broken and the XLM token price is trading below it. Volumes have increased causing the volatility to increase. 

The XLM token price is forming a falling wedge pattern on a 4-hour time frame

Moving Average Convergence Divergence: The XLM token price fell to the demand zone after facing strong bearish pressure off the supply zone. As a result, the MACD indicator triggered a negative crossover. The blue line crossed the orange line on the downside. As of now, the XLM token price is consolidating near the demand zone. If it breaks the demand, the MACD line can be seen widening supporting the trend and if it bounces off the demand zone, the ACD indicator can be seen triggering a positive crossover. 

Relative Strength Index: RSI curve is trading at the level of 39.95. The RSI curve is yet to cross the halfway mark of 50. Once the token gives a breakout of a falling wedge pattern on a 4-hour time frame, the RSI curve can be seen moving up. If that happens, the RDI curve can cross the halfway mark of supporting the trend. The RSI curve has crossed the 14 EMA yellow line indicating a short-term bullishness.

Supertrend: Supertrend indicator is negative as the token price broke the important small-term demand zone on the daily time frame. Since then the token price has failed to give a breakout of the supply zone in a larger time frame. As of now, the token price has broken the super trend buy line which has triggered a sell signal. Moving upwards the token price can be seen facing strong rejection of this super trend sell line. 

CONCLUSION: The XLM token price as per the price action is forming a bullish chart pattern on a lower time frame. But on a larger time frame, it is depicted otherwise. The technical parameters have turned bearish following the fall in the token price. Investors should remain cautious and wait for a clear trend. It remains to see if the token price will break the demand zone or bounce off it.

SUPPORT: $0.10 and $0.09

RESISTANCE: $0.13 and $0.141

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.