Stellar (XLM) has seen a 10% decline in its price over the past week, struggling to maintain its $10 billion market cap. Momentum indicators like the RSI are pointing to increased selling pressure and a possible move towards oversold conditions. The Ichimoku Cloud chart also indicates a bearish outlook for XLM, with the coin trading below the cloud and showing no immediate signs of reversal. Traders are closely monitoring the $0.351 support level, as a failure to hold could lead to further declines, while a successful rebound could pave the way for a recovery towards $0.40 and beyond.
The Stellar Relative Strength Index (RSI) is currently at 39.9, a significant decrease from over 60 just two days ago. This drop suggests a quick loss of buying momentum and a shift towards a bearish sentiment. While the RSI has not fully entered oversold territory, it is edging closer, indicating increased selling pressure. With XLM RSI on the decline, the coin is on the brink of bearish momentum, potentially leading to further downside in the short term unless buyers step in to stabilize the market.
The Ichimoku Cloud chart for XLM points to a bearish setup, as the coin is trading below the cloud, signaling downward momentum. The blue conversion line is below the red baseline, confirming the bearish sentiment and indicating sellers’ dominance in the market. The lagging span is also positioned below both the price and the cloud, highlighting ongoing bearish pressure. The future cloud shows that the leading span A remains below leading span B, projecting continued bearish sentiment unless there is a significant shift in momentum.
Stellar’s price is currently hovering near a critical support level at $0.351. If this support fails to hold, XLM could face further bearish pressure, potentially dropping to $0.31. However, if XLM manages to stay above $0.351 and rebound, it could regain upward momentum and test resistance at $0.40. Breaking through this resistance could pave the way for further gains, with the next significant level at $0.47. Traders are advised to conduct their own research and consult with a professional before making any financial decisions based on this analysis.
