Stellar Lumens [XLM/USD] Technical Analysis: Bears have clasped the cryptocurrency market hard showing no signs of letting go

Volatility seems to have made a come-back into the cryptocurrency world as the prices of all the cryptocurrencies including Bitcoin [BTC], Ethereum [ETH], and XRP have started going haywire and mostly towards the bottom.

1 Hour

The prices of XLM are on a roller coaster ride as the prices have broken the previous resistance and have fallen back deeper than before. At press time, XLM is trading at $0.2291 and the market cap hovers around $4.41 billion. The uptrend extends from $0.2173 to $0.2264, while the downtrend extends from $0.2856 to $0.2318.

The support at $0.2173 is holding steady since the prices bounced off of it on November 15. Since the prices have fallen back, the first resistance is at $0.2413, subsequent resistance points are set up at points, $0.2597, $0.2747 and $0.2853.

The Bollinger Bands are in a state of expansion due to the influx of volatility in the markets. The prices have fallen well below the simple moving average line indicating an oversold point.

The Aroon up line has crashed indicating an exhaustion of the uptrend. The Aroon downline has topped at the 100 line indicating that the downtrend has gained strength and is in play.

The Stochastic indicator shows a bearish crossover occurring as the lines have extended out of the stochastic band indicating an oversold market.

1 Day

The one-day chart shows no uptrend in sight. The downtrend ranges from $0.4350 to $0.2531. The support at $0.2227 was broken on October 14 and the prices managed to get back up. The subsequent support is formed at $0.1768. The resistance points are formed at $0.2813, $0.3336 and $0.3693.

The Parabolic SAR indicators show a bearish presence hanging over the market since the markers are above the candles.

The MACD indicator is showing a bearish crossover and the histogram represents the same.

The CMF is indicating money influx but it is very close to the zero line indicating that the influx is less but still persistent.

Conclusion

The one-day and the one-hour chart show the bearish trend. All the indicators show the bears clasping the market.