September 26 XLM Price Reaches Critical Juncture: Examining Key Support at 0.11 Dollars

Crypto News– Stellar coin (XLM) has experienced a gradual decline since reaching its yearly peak in July, now inching closer to a significant long-standing horizontal support level at $0.105.

Although there was a temporary breakout from a short-term descending resistance line, this upward momentum couldn’t be sustained. When examining the technical analysis on a daily timeframe, it’s evident that Stellar Lumens (XLM) has been confined under a descending resistance line since July 13. This decline eventually led to a low point at $0.105 on August 17. Subsequently, XLM rebounded (indicated by the green icon) and managed to break free from the descending resistance line on September 4. However, this breakout didn’t propel XLM beyond the $0.135 horizontal resistance zone. Instead, it faced rejection on September 11 and has been on a downward trajectory since.

September 26 XLM Price Reaches Critical Juncture: Examining Key Support at 0.11 Dollars

Stellar coin (XLM) is currently on the brink of testing the critical $0.110 horizontal support zone. A breakdown from this level could potentially result in a 15% decline, pushing XLM down to $0.095. Conversely, a bounce from this support could trigger a 20% surge, aiming for the $0.135 mark.

The daily Relative Strength Index (RSI) indicates a bearish sentiment. Traders commonly employ the RSI as a momentum indicator to gauge whether an asset is overbought or oversold, aiding their decisions to buy or sell.

XLM Price Analysis: Brace for Possible Downward Move Following Channel Breakdown

The bearish outlook is reinforced when examining the six-hour timeframe, which corroborates the bearish sentiment observed on the daily chart.

One key factor contributing to this sentiment is XLM’s break from an ascending parallel channel on September 17. Typically, such channels serve to contain corrective movements, and the channel’s breach signifies that the prior price action was indeed a correction.

The breakdown in XLM’s price aligns with the notion that the previous movement was corrective, providing further evidence of a bearish trend.

Moreover, the price action within the channel exhibits characteristics of an A-B-C corrective structure, which further supports the theory that the prior upswing was, in fact, corrective in nature.