Stellar bulbs (XLM) are traded in a descending channel. On 27 June, the Bulls purchased the drop close to the support line of the canal as seen from the long wick on the Candelabra.
The current return is likely to meet resistance at the 10-day EMA ($0.067) and above that at the channel's downtrend line. Breaking the channel will be the first sign that the downward trend may be over.
However, 14 In CoinMarketCap. if the next cryptocurrency falls from the 10-day EMA, it will increase the likelihood of breaking down to below $ 0.060 support. Below that level, the decline could rise to $ 0.055.
The 10 - day EMA is tilting downward and the RSI is in negative territory. This indicates that the Bears are in a superior position. In a downtrend, generally, rally sales offer greater profit potential rather than buying declines.
The current pullback attempt is likely to meet resistance in the region between the 10-EMA and the bearish trend line.
If the price falls from this resistance zone, the Bears will once again try to lower the XLM / USD rate below $ 0.060. If successful, the downward trend is likely to continue.
Conversely, if the bulls push the price above the downward trend line, the aid rally could extend to the channel's resistance line. If the price falls from that resistance, the Bears will try to keep up the downward trend.
If the Bulls can move the price above the channel's resistance line, that bearish view will be overridden. Such a move would signal a possible change in trend.