With a double top at the $0.16 mark, the XLM price trend ends and starts the correction phase. Leading to a 15% drop in late July and early August, the Stellar coin price dropped below the crucial level of $0.014.
Following the breakdown, the XLM prices retest broken range with a 4.85% recovery, teasing a potential post-retest reversal.
With an intraday fall of 1.70%, the Stellar coin price starts the post-retest downtrend. Currently, the XLM coin price action completes an evening star pattern with a spike in volume, reflecting a rise in bearish sentiment.
With the downtrend ready to test the bullish confidence at the confluence of the 50-day EMA and the 23.60 Fibonacci level, the downtrend gains momentum.
The technical indicators also maintain a slightly bearish standpoint with the declining MACD and RSI trends. The 50 and 200-day EMA sustain a positive trend, but the rising selling pressure flatlines both.
With the growth in the selling spree, the XLM price will soon challenge the 50-day EMA at $0.129. In case of a bearish outcome, the downtrend will extend to the 50% Fibonacci level at $0.119, accounting for a drop of almost 15%.
On the flip side, a positive recovery with lower price rejection can keep the Stellar coin price floating above $0.14. It can help the XLM price trend bounce back to $0.16 for a new bullish breakout attempt.
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