Stellar Lumen is trading in a vulnerable position after slipping back into a bearish trend and breaking below key technical support.
Stellar Lumen technical analysis shows that a large bullish reversal pattern still remains valid while price trades above the 0.042000 level, which may keep hopes of an upside recovery alive.
Stellar Lumen medium-term price trend
Stellar Lumen has turned technical bearish over the medium term after being repeatedly rejected from its 200-day moving average, around the 0.060000 level.
Stellar Lumen price analysis continues to show that a large inverted head-and-shoulders pattern on the daily time frame remains valid while the price trades above the 0.042000 level.
Stellar Lumen will likely fall to fresh multi-year lows if the bullish pattern is invalidated, with the 0.020000 and 0.012000 level the long-term downside targets.
The cryptocurrency has now broken past the 78.6 per cent Fibonacci retracement level of the 2019 low to the current 2020 high, around the 0.052000 level.
With key Fibonnaci support broken and the cryptocurrency falling to bounce from the 78.6 percent Fibonacci retracement level, the medium-term picture remains bleak for XLM/USD.
Overall, Stellar Lumen desperately needs to bounce from current levels to secure its medium-term prospects.
Stellar Lumen short-term price trend
Stellar Lumen technical analysis over the short term shows that the cryptocurrency has a bearish bias while the price trades below the 0.066000 level.
Despite the short-term bearish bias, a key technical indicator is warning that a bullish recovery may be on the horizon.
Bullish MACD price divergence has been created on the 30-minute time frame during the recent reversal from the 0.089000 level.
The 30-minute time frame shows that the bullish MACD divergence extends towards the 0.058000 level.
Stabilisation above the 0.052000 level will provide a strong indication that a near-term recovery in the cryptocurrency may be forthcoming.
Stellar Lumen technical summary
Stellar Lumen technical analysis suggests that a breach of the 0.052000 level has clouded the medium-term prospects for XLM/USD. Bullish MACD divergence warns that a near-term bullish recovery towards the $0.058000 level could occur.