According to the price analysis by Peter Smith, a financial analyst at dagx.live crypto trading platform, the pullback in Stellar (XLM) stalled just below the 20-day EMA but it has not turned down sharply. It has been trading in a tight range for the past two days, which shows a balance between buyers and sellers. A breakout of the moving averages will be the first sign that the downtrend might be over.
If the price breaks out and closes (UTC time) above the 50-day SMA, a rally to $0.088708 is possible. The positive divergence on the RSI also indicates that a relief rally might be around the corner. Therefore, aggressive traders can initiate long positions as suggested in an earlier analysis.
Contrary to his assumption, if the XLM/USD pair turns down from current levels and breaks below $0.055901, it can drop to $0.051014.