Stellar Lumens Price Prediction: Bearish Trend Likely to Continue

Summary:
• Stellar Lumens' price is up by more than three per cent in today's trading session. This is despite the cryptocurrency being bearish

Stellar Lumens’ price is up by more than three per cent in today’s trading session. This is despite the cryptocurrency being in a long-term bearish trend that has seen it lose more than 20 per cent in April and 30 per cent since the year started.

Stellar Lumens has remained one of the most stable cryptocurrencies in the market for the past five years. In an analysis done by Motley Fool, Stellar Lumens has been one of the few cryptocurrencies that have managed to keep their place in the top 50 biggest coins based on market capitalisation in the past five years. The analysis also found that, although the Stellar Lumens have failed to reach their 2018 highs, investors five years ago now have a 9,500 per cent increase in their capital.

Stellar real-world usage has also been among the top reasons for its market dominance. According to the Motley Fool report, unlike other projects that try to replace the traditional financial systems, stellar wants to enhance existing institutions. Their main goal is to have a system that can be used worldwide for financial transactions. They have also worked to create more accessibility for their users.

Despite all these developments, Stellar Lumens is currently struggling in the markets. It has been in a long-term bearish move for months since early November 2021. The past few trading sessions have also seen the cryptocurrency dropping by 15 per cent in seven days.

Stellar Lumens Price Prediction

Stellar Lumens’ price has recently failed to break a long-term resistance level of $0.21. Instead, the prices moved aggressively downwards after hitting the resistance level. Today, the cryptocurrency is trading at $0.18 after going up by more than three per cent.

Using the chart below, I still expect the prices to continue with the bearish trend despite today’s bullish movement. I expect the price to hit the $0.16 support level. There is also a high possibility of the prices trading down the support level. This is based on the recent price action analysis that has seen Stellar Lumens losing more than 20 per cent in April.

Stellar Lumens Daily Chart