fxs_header_sponsor_anchor

Stellar price holds above critical support as technicals suggest it's time to buy the dip

  • Stellar is moving inside a descending triangle pattern.
  • A sustainable move above $0.164 is needed to confirm the bullish scenario.

Stellar (XLM) hit a recent top at $0.23 on November 26 and has retreated to $0.16 by the time of writing. The 11th largest digital asset with a current market capitalization of $3.5 billion has lost over 6.5% in the recent 24 hours and 12% on a week-to-week basis.

Stellar's trading volumes dropped from over $2 billion by the end of November to just $350 million per day currently. The coin is most actively traded on Binance, Huobi Global, and OKEx.

Stellar bulls plot a massive comeback

From the technical point of view,  XLM is moving inside a descending triangle pattern visible on the 4-hour chart. If the support created by the x-axis of the triangle around $0.15 continues to hold, the coin may be poised for a strong rebound with the estimated target at $0.21.

XLM, 4-hour chart

At the same time, the TD Sequential indicator on the 4-hour chart is ready to produce a buy signal. A red nine candlestick will confirm the buying potential and add credibility to the bullish scenario.

On the other hand, a sustainable move below the above-said x-axis will invalidate the immediate positive outlook and result in an over 30% sell-off with an estimated target at $0.1.

XLM, 4-hour chart

It's important to note that a descending triangle is a bearish pattern, meaning that the price is likely to go below the support area and extend the decline. However, considering the rebound and a positive signal of TD Sequential indicator, the chances are that the price will eventually go through the sloping trendline at $0.164 and continue the recovery.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.