Stellar (XLM) has been facing a downtrend, with its price declining by 10% over the past week, causing its market cap to drop to $10.87 billion. Momentum indicators like the Relative Strength Index (RSI) are showing a sharp decline, indicating increased selling pressure and a possible move towards oversold conditions. The Ichimoku Cloud chart is also painting a bearish picture, with XLM trading below the cloud and showing no signs of an immediate reversal. Traders are closely monitoring the $0.351 support level, as a break below this could lead to further declines, while a successful rebound could pave the way for a recovery towards $0.40 and beyond.
The Stellar RSI is currently at 39.9, significantly lower than two days ago when it was over 60. This drop suggests a rapid loss of buying momentum, with the market sentiment turning bearish. While the RSI has not entered oversold territory yet, the move from a strong neutral range to a lower RSI indicates increased selling pressure. The RSI, a momentum oscillator, measures the speed and magnitude of price changes and values below 30 suggest oversold conditions, potentially signaling a rebound. With XLM’s RSI declining rapidly, the coin is on the brink of bearish momentum, hinting at possible further downside in the short term.
The Ichimoku Cloud chart for XLM is displaying a strong bearish setup, with the price currently trading below the cloud, indicating downward momentum. The blue conversion line is below the red baseline, confirming the bearish sentiment and implying that sellers are dominating the market. Previous attempts to break above the cloud have failed, reinforcing the strength of the bearish trend. The lagging span is positioned below both the price and the cloud, emphasizing the persistent bearish pressure. The future cloud shows that the leading span A remains below the leading span B, projecting continued bearish sentiment in the near term. These factors suggest that XLM price is likely to remain under pressure unless there is a significant shift in momentum.
Stellar’s price is hovering near a crucial support level at $0.351, which will be key to determine its next move. If this support fails to hold, XLM may face further bearish pressure, potentially dropping to $0.31. However, if XLM manages to maintain above $0.351 and rebound, it could regain upward momentum and target the resistance at $0.40. Breaking through this resistance could pave the way for XLM to climb higher, possibly testing the next significant level at $0.47.
In conclusion, Stellar (XLM) is currently facing a challenging period as it struggles to maintain its market cap amidst a bearish trend. Momentum indicators like the RSI and the Ichimoku Cloud chart are pointing towards further downside potential, as selling pressure mounts. However, the key support level at $0.351 will be crucial in determining whether XLM can stage a recovery and potentially target higher resistance levels. Traders will be closely monitoring these indicators to gauge the overall market sentiment and make informed decisions regarding their XLM holdings.
