- Stellar is likely to extend the bearish outlook to $0.14 before recovery comes into the picture.
- A buy signal on the daily chart indicates bullish potential and closing above $0.15 would be a massive positive signal.
Stellar bulls are nursing wounds after a massive battering from the sellers over the last 24 hours. The cross-border token has extended the bearish leg under $0.15 and is currently trading at $0.146. Sellers appear to be engulfed by exhaustion amid improving technicals.
Stellar downtrend on its last stroke
XLM/USD breakdown begun after the remarkable uptrend in November hit a barrier at $0.23. Initial support above $0.14 saw Stellar recover considerably and touch $0.22. Since then, the price has been on a consistent downtrend with the token’s upside capped under a descending trendline.
The bearish outlook seems to have been confirmed following the drop under the 50 Simple Moving Average and the 100 SMA support levels. According to the Relative Strength Index, Stellar is likely to refresh November support before a significant recovery occurs.
Closing the day above $0.15 would be a bullish signal. New upward momentum will come into the picture if Stellar steps above the descending trendline resistance.
%20(13)-637430988502276664.png)
XLM/USD 4-hour chart
The TD Sequential indicator has flashed a buy signal on the daily chart in the form of a red nine candlestick. If validated, the demand for XLM will surge, creating enough volume to support recovery in one to four daily candlesticks. Price action above the key resistance at $0.18 might call for more buy orders; perhaps the tailwind will be strong enough for gains above $0.2.
XLM/USD daily chart
It is worth noting that Stellar’s short-term analysis is bearish, and if support at $0.14 fails to hold, declines might overshoot to test the 200 SMA at $0.13. Further down, the next key buyer congestion zones include $0.1 and $0.08.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.