- The XLM Prize is on a three-day losing streak in a row.
- Highs and lows get lower at the same time.
- Another downside is expected for Stellar as there is no real support up to $ 0.195.
The XLM price tried to recover this past weekend. On Sunday, buyers were caught in a seemingly false upside breakout and as of Monday, sellers will dictate price action in Stellar with confirmation of a short-term downward trend channel.
XLM price under heavy selling pressure
Not only the XLM price is on the chopping block, but also other important cryptocurrencies. On Monday, Stellar’s price action confirmed it was in a downward channel and is unlikely to break out any time soon. The highs are coming lower every day and the lows are getting lower by the day, with sellers heavily dictating the XLM price action.
Today the S1 monthly support pivot was taken out at $ 0.228. Further down, the XLM price is supported by the S2 support at $ 0.209 which is currently in line with the lower leg of the trend channel. Historically, this support has proven to be very thin.
XLM sellers will put full pressure on buyers, pushing price action to $ 0.195, the June 22nd low. This level appears to have more support with the S3 support levels from the previous month and this month just below that.
XLM / USD daily chart
Expect short sellers to ride this trade to the tick. Sellers have so much control and with the current sentiment in the crypto space, this acts as a tailwind in their favor.
Buyers will wait for this trend channel to complete towards $ 0.195 before entering a long position. If the XLM price can then break out of the descending trend channel, a new test towards $ 0.3035 would be possible in the coming months.