Stellar price recovered nicely from the $0.157 low against the US dollar. XLM/USD is currently above the $0.220 support and is eyeing further gains.
Key Talking Points
Stellar price is trading nicely above the $0.2200 level and it is in a bullish zone against the US dollar.
There is a major bearish trend line forming with resistance at $0.2700 on the 2-hours chart of the XLM/USD pair.
The pair may rise further in the near term as long as it is above the $0.2200 support level.
Stellar Price Forecast
After a major decline, stellar price was able to find support above the $0.1500 level against the US dollar. The XLM/USD pair started an upside move and it was able to trade above the $0.1800 and $0.2000 resistance levels.
The price even traded above the $0.2200 pivot and the $0.2500 level. However, the upside move was capped by the $0.2850 resistance. Moreover, a major bearish trend line with current resistance at $0.2700 on the 2-hours chart of the XLM/USD pair also acted as a barrier.
The pair declined and traded below the 23.6% Fib retracement level of the last wave from the $0.1574 low to $0.2859 high. However, the downside move was protected by the $0.2200 level. The mentioned $0.2200 level was a resistance earlier and it is now acting as a strong support.
Moreover, the 50% Fib retracement level of the last wave from the $0.1574 low to $0.2859 high also acted as a decent support. At the moment, the price is trading well above the $0.2200 level and the 100 simple moving average (2-hours).
It may continue to rise, but the trend line resistance near $0.2700 will most likely prevent further gains. If buyers succeed in pushing the price above the $0.2700 level, the price may even break the $0.3000 level for more gains.
On the downside, the $0.2200 level holds a lot of importance for the current wave. A push below $0.2200 could ignite more losses towards $0.1800.