- XLM price is finally catching a breath after the correction from the past few days.
- Upside is limited with a few technical resistances that can easily push price-action back down.
- Stellar can retest $0.20 and could break lower in a bull trap.
XLM price is not shooting for the stars these past few days. And technically, the Stellar story is not that bright either, with a break below $0.20 possible in the coming days.
XLM price is caught in a bull trap
On a daily chart, XLM price sees a very nice recovery from the bounce of $0.20. Before you consider going long Stellar, it is time to have a look under the hood, and that is not a very compelling story.
Although XLM price action might be recovering, it had a substantial break to the downside of the 0 Fibonacci level. Stellar does not look like the recovery will get back up there today, which makes that level a heavy resistance area to the upside.
XLM/USD daily chart
XLM price can go a little bit higher, but if we do not get a daily close above the $0.27 level, this is potentially a bull trap and Stellar could dip lower towards $0.20 for the retest and break lower.
If XLM price does get a daily close above, a clear break of the trendline is a further reason to buy Stellar.