Stellar’s Lumen Technical Analysis – Lumen Turns Bearish – 22/03/2018

Key Highlights

• Stellar’s Lumen slides 5.79% on Wednesday, reversing most of Tuesday’s 9% gain.
• A bullish trend formed from last Sunday’s swing low $0.1547 reversed from late Tuesday’s swing hi $0.24252.
• Wednesday’s intraday low $0.24253 avoided testing the day’s major support levels while testing buyer appetite late in the day.

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Stellar’s Lumen Price Support

Stellar’s Lumen saw its first decline of the week on Wednesday, falling 5.8% to end the day at $0.25152, following Tuesday’s 8.96% rally that led to the week’s $0.28182 high.

Things have turned bearish for Stellar’s Lumen since Tuesday’s high, with a fall through to an intraday low $0.24254 on Wednesday testing buyer appetite at the day’s 23.6% FIB Retracement Level of $0.2518.

While the shift in sentiment towards Stellar’s Lumen failed to test the day’s first major support level of $0.23877, a failure to test major resistance levels through the day added to the negative sentiment towards Lumen, with Lumen having been under pressure ahead of the broader market decline in the late afternoon.

At the time of writing, Stellar’s Lumen was down 1.31% to $0.2483, with Lumen the worst performer amongst the crypto majors through the early part of the day.

For the day ahead, Stellar’s Lumen will need to move back through to $0.25 levels and the morning’s intraday high $0.25905 to support a run at the day’s first major resistance level of $0.26744, which will also test selling pressure at the day’s 23.6% FIB Retracement Level of $0.2518 on the way, a buildup of sellers at $0.25 levels having led to a pullback earlier in the day.

This morning’s intraday low 0.24682 has seen Stellar’s Lumen fall back from the 23.6% FIB Retracement Level, after having tested the day’s 38.2% FIB Retracement Level of $0.2575 earlier in the session, leaving the day’s first major support level of $0.23907 to hold off a more material decline through the day.

In spite of this morning’s losses, there has been some degree of support for Stellar’s Lumen, with the majority of the crypto majors sitting in positive territory at the time of writing. A shift in direction for the broader market to the negative will add significant pressure on Lumen, already in a bearish trend, bringing the day’s 2^nd support level of $0.2266 into play, though such a move would need the news wires to deliver a blow to the broader market.

Recent news suggests that, while the regulatory landscape is about to change, things may not be as dire as had been anticipated going into this week.

It’s still far too early to say whether the planned rollout of global crypto regulations in July will be favorable or not. In the meantime how governments and regulators look to manage the crypto market and initial coin offerings will continue to be the key driver for the cryptomarket over the near-term.

Looking at the Technical Indicators

• Major Support Level: $0.0.23907
• Major Resistance Level: $0.26744
• Fib 23.6% Retracement Level: $0.2518
• Fib 38% Retracement Level: $0.2575
• Fib 62% Retracement Level: $0.2668