Supply zone: $0.2000, $0.2500, $0.3000
Demand zone: $0.1000, $0.0800, $0.0600

XLM continues in a bearish trend in its medium-term outlook. The strong bearish pressure from the double top confirmed by the bearish doji on 1st December pushed XLMUSD to $0.1609 in the demand area. Sustained bear pressure led to the break of the 10-EMA and subsequent drop in price to $0.1434 in the demand area earlier today.

Retracement to the upside is currently happening with price at $0.1545 which is the 38.2 fib level a trend continuation zone. The bears may stage a comeback from this level or allow slight push to the 50.0 fib level before a return.

The bears return would be signalled by bearish reversal candlesticks pattern which may be either at the 38.2 or the 50.0 fib level.

The cryptocurrency is consolidation in its short-term outlook. The bears' pressure initially dropped the cryptocurrency to $0.1482 in the demand area as the lower low yesterday as the session ended with a brief pullback to $0.1523 in the supply area.

The bears lost momentum after XLMUSD was down to $0.1723 in the demand area as the bulls stage a comeback and the cryptocurrency enters a range-bound market.

XLMUSD is in consolidation and trading between $0.1600 in the upper supply area and at $0.1450 in the lower demand area of the range. A breakout at the upper supply area or breakdown at the lower area may occur hence patience is required to allow this to happen before a position is taken.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research

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