XLM Price Prediction: Stellar breakdown to $0.3 brews amid consolidation


  • Stellar is dealing with intensifying selling pressure after the rejection at $0.435.
  • Declines to $0.3 will come into the picture if Stellar closes the day under $0.4.
  • The uptrend toward an all-time high will continue if the parabolic SAR points flip bullish.

Stellar has slowed down the persistent uptrend aiming for the all-time highs of around $1. The recovery towards the end of January and the first week of December has been incredible. However, a yearly high formed at $0.435, limiting additional movement. Consolidation seems to be taking over amid signals for a correction to lower price levels.

Stellar struggles to shake off the bearish pressure

The failure to continue with the uptrend past the recent high has seen overhead pressure begin to increase. XLM is trading at $0.398 amid the scuffle to restore the trading above $0.4. Glancing upwards, we can see the cross-border token trading below the parabolic SAR points. Trading below the parabolic line (dots) suggests that the trend is turning bearish and is probable not to buy.

Consequently, the Relative Strength Index reveals that the ongoing sideways trading may last longer. The technical indicator is leveling at 62, which is not entirely bearish, but at the same time, it is not a bullish signal. A motion toward the midline will reveal an increase in selling pressure.

XLM/USD 4-hour chart

XLM/USD 4-hour chart

In case of a breakdown from the current price level, Stellar will seek initial support at the 50 Simple Moving Average on the 4-hour chart close to $0.35. If selling orders surge and the overhead pressure surges, we can expect XLM to explore downhill levels toward $0.3. Note that the 100 SMA will anchor the price, perhaps absorb the selling pressure before hitting $0.3.

Short-term analysis on the hourly chart validates the bearish narrative, especially with the RSI diving fast towards the midline. The near term support at the 50 SMA must also be guarded at all costs to ensure that selling orders are not triggered. Trading under the midline is likely to increase the overhead pressure, pushing XLM towards $0.35.

XLM/USD 4-hour chart

XLM/USD 4-hour chart

Looking at the other side of the fence'

It is worth mentioning that the pessimistic outlook will be nullified if Stellar closes the day above $0.4. Gains above this level would encourage more buyers to join the market, allowing Stellar to continue with the mission towards $1. Moreover, if the parabolic SAR points flip bullish, Stellar’s uptrend will continue.


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


Recommended Content

Editors’ Picks

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.

More Meme Coins News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP