The crypto industry has been in a state of restructuring for a time, and many altcoin sellers are rushing to sell their digital assets around the board. Stellar Lumens [XLM] was also in a lengthy, prolonged period of consolidation, taking the same shape as the bearish sector on the charts.
At the time of publishing, XLM was valued at $0.2549, with the crypt leaning closer to its critical support level.
Stellar Lumens 6-hour chart
Source: XLMUSD on TradingView
The 6-hour map of Stellar Lumens demonstrated the powerful rally at the beginning of the year, which lifted the price of the crypt to $0.4. However, it has been faltering since then. In reality, persistent push and pull constituted a significant degree of support for the digital asset on the map.
After breaking two important supports, XLM was close to breaking another important support at $0.2300, thus providing form to the descending triangle, the bearish warning.
Reasoning
The descending triangle marked the emergence of bearishness on the economy. The 50 moving average also underscored the downward trending importance of XLM. If the value of the coin breaks the level of support, the demand of the coin can report another wave of sellers.
In the meanwhile, the Relative Strength Index bounced back from the oversold zone. There was a fleeting rescue attempt at $0,2300, but the sellers were unable to hold on to this amount as the RSI again pointed south. In a low-energy market, the price of XLM would have a tough time recovering its lost value.
Crucial levels to watch out for
Entry: $0.2505
Stop-Loss: $0.2681
Take-Profit: $0.2114
Risk-to-Reward: 2.22
Conclusion
The new trading pattern has painted a strong picture for short sellers. With an entry of $0.2505, traders will make a profit of $0.2114. The price of XLM will move into another level of support at $0.2084, a level that is not a big support because it has not been checked more than once.
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