Stellar Lumen price analysis: Bulls must defend $0.060 support level
12:52, 29 May 2020
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.
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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.
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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.
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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.