NEO and Stellar (XLM) Technical price analysis: Cryptocurrencies Correcting Lower in a Bearish Market

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NEO Technical Price Analysis

NEO price is correcting lower during trading on Thursday as a bearish wind sweeps through the entire cryptocurrency market. The crypto is down 7% after opening the day’s trading session at $73.4. The currency embarked on an upside trend earlier on in the day but the upward momentum was capped under $75. The downside movement was initiated as the entire cryptocurrency market played catch up to the news that Snapchat, one of the social media platforms has affected the ban of all Initial Coin Related adverts.

During the decent, NEO/USD broke below key support levels. For example, the price could not find support at $70.00 and $68.00 levels respectively. At the moment, NEO is exchanging hands at $68.00 and has formed an immediate support level close to $66.00. The cryptocurrency is trading below both the 50-simple moving average and the 100-simple moving average trend lines. The trend indicators meet $105 on the daily chart to show that NEO will retrace upwards towards the $100 level.

The 61.8% Fibonacci retracement level with the previous swing high of $190 and a low of $32 is in the path of upward price movement. NEO price will experience stiff resistance at this level close to $90 on its way towards $100. On the downside, there is an extended negative MACD momentum indicator, showing that the bearish momentum is strengthening. If selling pressure increases, NEO price could the next major support level at $55.00. On the upside, the bulls in the market could be getting ready for a comeback. If the bulls regain control of the market, NEO could head towards the pivotal $100 level. Above this level, the price could continue to gain traction. Below the level, the sellers will continue to control the market.

Stellar (XLM) Technical Price Analysis

Stellar Lumens (XLM) price is swimming in the red sea just like many other cryptocurrencies in the market. XLM/USD fell to an intraday low of $0.23 during trading on Wednesday. Tuesday was a good day for Stellar as it rallied by 8.96% in the day’s trading and achieving the week’s high of $0.28. The crypto, however, embarked on a downside trend that saw it lose 5.8% of its value on Wednesday.

Stellar (XLM) has been struggling to reverse the downside momentum from Tuesday’s high of $0.28 on the daily chart. The declines sustained throughout the day to test the buyers’ appetite at the 23.6% Fibonacci retracement of the previous high of $0.28 and a low of $0.23. At the same time, the shift in sentiment concerning Stellar’s Lumens were not able to test the immediate support level at $0.23. On the other hand, not testing the immediate resistance level along the trading session paved the way for further declines. XLM/USD sustained negative selling pressure in a market where bears were in control.

In the coming trading session before the end of the week, XLM/USD must reverse the trend towards the immediate resistance levels at $0.25 and $0.26 to open the door for more gains. This movement will test the 23.6% Fibonacci retracement as it moves up towards the week’s high at $0.28. The currency will encounter build up of sellers at $0.25 which is a pivotal point for the price.

The general bearish pressure in the market adversely affects XLM/USD, which has been struggling to keep up the rest of the coins during the last couple of weeks. The regulatory landscape is not as bad as it had been anticipated. This calm environment could be a boost to the cryptocurrencies including Stellar to roll to the upside direction.


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