- XLM/USD has recent bottom area breached firmly by the market bears.
- XLM/BTC suggests there is still some further room for another squeeze to the downside.
Stellar Lumens is really heading to no man’s land. XLM/USD is running at its fifth consecutive session in the red, dropping a chunky 25% within this period. The selling pressure has intensified after recently stabilizing and forming a bottom. This was seen between the 25th – 27th November, following the chunky market fall throughout the month of November. The low area was formed around the $0.1350 mark. Bulls not too long after capitalized on this, driving the price up to around $0.1750. This move took XLM/USD into a prior area of demand, which started to act as new resistance.
XLM/USD daily chart
Given the strength of this current downside momentum, vital support has been breached. As detailed above, XLM/USD had formed a bottom and observed buyers defending between $0.1450-$0.1350. This has now folded, given the punishing pressure from the bears. There was some technical hope that a strong bounce would have been seen, with a possible double bottom formation. However, that not proving the be the case, with a fresh wave of sellers coming into play. XLM/USD being sent to the south to print a fresh yearly low.
The bears are on course to see a convincing daily close below the recent bottom area. This will likely spark further panic selling or speculative pressure to the downside. Logically, the next major downside target could be the psychological $0.10 cent mark. Should this continue at the current pace lower seen, then that price target can be seen in the coming days or so.