Stellar's Lumen sees heavy losses early as focus shift to Bitcoin and a run at $8,000. Holding on to $0.28 levels will be key early on.
Stellar’s Lumen gained 0.9% on Monday, following Sunday’s 2.69% fall, to end the day at $0.28606.
Tracking the broader market, Stellar’s Lumen rallied through to a morning intraday high $0.30451, breaking back through the 23.6% FIB Retracement Level of $0.2927 to test the day’s first major resistance level at $0.3024 before a reversal kicked in through the late morning and early afternoon.
Sliding back through the 23.6% FIB Retracement Level of $0.2927, Stellar’s Lumen pulled back to an intraday low $0.2797 in the mid-afternoon, holding just above the day’s first major support level at $0.2725 before a late recovery to $0.28 levels.
In spite of failing to hold above the 23.6% FIB Retracement Level of $0.2927 by the day’s end, the partial recovery at the start of the week left the near-term bullish trend intact, though Stellar’s Lumen will need to avoid sub-$0.27 levels and the 38.2% FIB Retracement Level of $0.2692 to fend off a resumption of the extended bearish trend formed at late April’s swing hi $0.46547.
At the time of writing, Stellar’s Lumen was down 1.79% to $0.28098, with Monday’s second half of the day reversal continuing into the early hours of this morning, an early move through to a morning high $0.29109 falling short of a break back through the 23.6% FIB Retracement Level of $0.2927 to bring $0.30 levels and the first major resistance level at $0.3005 into play.
A pullback from the early morning high saw Stellar’s Lumen fall to a morning low $0.27905, to hold above the first major support level at $0.2757 before moving back to $0.28 levels.
For the day ahead, a move back through to $0.29 levels would be needed to support another run at $0.30 levels and the first major resistance level at $0.3005, while the 23.6% FIB Retracement Level at $0.2927 will likely provide plenty of resistance through the morning.
Failure to break back through to $0.29 levels could see Stellar’s Lumen take a bigger hit later in the morning, bringing the first major support level at $0.2757 into play before any recovery, Stellar’s Lumen facing the possibility of a resumption to the extended bearish trend should sentiment not shift through the middle of the day. A hold at $0.28 levels through the mid-morning will be a must to support any recovery.
Major Support Level: $0.2757
Major Resistance Level: $0.3005
Fib 23.6% Retracement Level: $0.2927
Fib 38% Retracement Level: $0.2629
Fib 62% Retracement Level: $0.2312
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.