Stellar is trying to bounce at the 61.8% Fibonacci retracement level of $0.34, but the relief rally is expected to face selling at the 20-day simple moving average (SMA) of $0.43.
If the price sharply drops from the 20-day simple moving average (SMA), this suggests that the sentiment has turned negative and traders are selling on rallies. This could push the price down towards the 50-day simple moving average (SMA) of $0.33, a crucial support level to watch. If the 50-day SMA is broken, the XLM/USDT pair could plummet to $0.29.
Buyers will need to push and maintain the price above the 20-day simple moving average (SMA) to indicate a recovery. The pair could then rise to $0.46 and subsequently to $0.49.
