Stellar Lumen is starting to ease lower, as weakness in Bitcoin continues to drag other top altcoins lower.
Stellar Lumen technical analysis shows that bulls need to defend the $0.6000 support level to avoid a heavy decline in the XLM/USD pair.
Stellar Lumen medium-term price trend
Stellar Lumen has fallen back towards the $0.065 level, after the pair was once again rejected from the $0.070 resistance area.
Stellar Lumen price analysis shows that the XLM/USD pair remains technically bullish while price trades above the $0.057 level.
Price is currently testing the top of a large falling wedge pattern, following a rejection from the $0.077 level earlier this month.
The top of the falling wedge is located around the $0.066 level, while the bottom of the price channel is around the $0.022 level.
Falling wedge patterns are typically considered to indicate bullish reversals.
If bulls can hold price above the falling wedge pattern then the XLM/USD pair could rally towards the $0.100 level over the medium term.
Stellar Lumen short-term price trend
Stellar Lumen technical analysis over the short term shows that the cryptocurrency only has a bearish bias while the price trades below the $0.068 support level.
The four-hour time frame shows that a bearish head-and-shoulders pattern will form if price reaches the $0.060 level.
A breakout below the $0.060 level will activate the bearish pattern, which holds a downside projection of around $0.017.
It is also noteworthy that a bullish reversal pattern will form if the XLM/USD pair recovers from current levels and rallies back towards $0.077.
Overall, bulls must defend the $0.060 level over to secure the XLM/USD pair’s short and medium-term prospects.
Stellar Lumen technical summary
Stellar Lumen technical analysis highlights that the cryptocurrency is trading at a critical juncture. Bulls need to hold above $0.060 level to avoid a sharp $0.017 decline.