Stellar drops to a confluence of supports- Is price reversal likely

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Stellar [XLM] has retraced to a confluence area of support levels, which may impact traders if a trend reversal occurs. At press time, XLM traded at $0.1032, down only 0.71% in the past 24 hours, according to Coinmarketcap. 

Read Stellar [XLM] Price Prediction 2023-24

On 31 March, XLM breached $0.1, appreciating by over 20%. But the bearish order block placed at $0.1124 set it into a correction, shedding about 8% in the drop. Will the confluence of support prevent further drop? 

Source: XLM/USDT on TradingView

On March 28, XLM breached a stiff resistance level of $0.0964 and inflicted a bearish order breaker. But the upswing hit a price ceiling at $0.1118, with the overall price action chalking a bullish pendant. 

Besides, the retracement has hit a key confluence area of $0.1020 – a convergence of an ascending line, a bullish order block on the 12-hour chart, and 20 EMA (exponential moving average). Sellers could face a strong obstacle at the confluence area which may offer bulls a soft landing to inflict a recovery. The immediate target for a bullish breakout scenario will be $0.1118 – a 6% potential rally. 

Sellers may have difficulty denting bullish sentiment beyond $0.1020. Contrary to this assumption, sellers may gain more leverage if they overcome this obstacle. A close below $0.1018 could expose XLM to more selling pressure, which could sink it toward $0.0964. 

Meanwhile, the RSI retreated from the overbought zone – a decline in buying pressure. But the RSI may rebound from the equilibrium level if the past trend repeats. However, a bearish MACD crossover