The XLM price is on a three-day losing run.
Both the highs and lows are falling in lockstep.
More fall is likely for Stellar, as there is no genuine support until $0.195.
This past weekend, the price of XLM attempted to recover. Buyers were caught up in what appeared to be a false breakthrough to the upside on Sunday, and sellers now control the price movement in Stellar, with the confirmation of a short-term trend channel to the downside.
Not only is the price of XLM in jeopardy, but so are the prices of other big cryptocurrencies. Stellar price activity indicated that it is in a downward channel as of Monday, and does not appear to be breaking out anytime soon. The highs are becoming lower by the day, and the lows are falling lower by the day, with sellers controlling the price action of XLM.
At $0.228 today, the monthly S1 support pivot was wiped out. Further to the negative, XLM is supported by S2 support at $0.209, which coincides with the lower leg of the trend channel for the time being. In the past, this support has proven to be flimsy.
XLM sellers will go all out against buyers, pushing price action to $0.195, which corresponds to the June 22 low. With S3 support levels from the prior month and this month just below, that level appears to have greater support.
Daily XLM/USD chart
Short sellers are likely to ride this trade to the finish line. Sellers have such a strong grip on the market, and current mood in the crypto industry is working in their favor.
Before entering the long position, buyers will wait for the trend channel to reach $0.195. If the price of XLM can break out of the falling trend channel, a retest toward $0.3035 could be conceivable in the coming months./n
