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Stellar (XLM) Token Shows Bearish Pattern After Strong Sell-off

Published 23/03/2023, 17:44
Stellar (XLM) Token Shows Bearish Pattern After Strong Sell-off

  • The Stellar price analysis shows a bearish trend over the past 24 hours.
  • XLM/USD has lost 3.26% of its value and currently trades at $0.0914.
  • If the bearish market persists, we might see the XLM falling toward the support level of $0.08871.

The Stellar price (XLM) analysis shows that the bearish momentum has taken control of the market. The Selling pressure is increasing on the XLM market, and prices are falling toward lower levels. The Stellar token is trading near the channel bottom at $0.0914 and lost 3.26% in the past 24 hours.

XLM/USD daily price chart: Coin Market Cap

The past few days have been supportive for the bulls after the price of XLM climbed to highs near $0.095 and tested the resistance at $0.09536 as the buyers pushed the price higher. However, today the bears have taken over, and the price of XLM has dropped back below the $0.095 level.

If this bearish pressure continues, then we might see a deeper correction bringing the XLM/USD closer to the $0.08871 support level. On the upside, if the bulls can manage to push prices higher and break out of the current resistance at $0.09536, then we might see a further increase in price with a possibility of testing the next resistance at $0.10 levels once again.

The 24-hour trading volume for XLM/USD has decreased to $129 million and is still much lower than the previous levels indicating that investors are reluctant to trade due to the bearish sentiment in the market. The market capitalization for the XLM token has also decreased to $2.47 billion, with a decrease of more than 3 percent in the last 24 hours, ranking it at the #28th position on Coinmarketcap.

The Daily technical indicators for the XLM/USD pair remain bearish and indicate further downside momentum. The Stochastic RSI indicator is in neutral territory and is located at 57.82; however, if bears persist, we might see the Stochastic RSI moving toward the oversold territory. The MACD is in bearish mode and has crossed below the signal line, indicating further downward momentum.

XLM/USD 1-day price chart: TradingView

The Bollinger bands on the daily chart also show a bearish sentiment as they have squeezed together, indicating that we might see a period of low volatility in the Stellar market. The upper Bollinger band is currently at $0.0944, which may be a strong resistance for the XLM/USD pair. The lower band is currently at $0.07592, which may act as a support level if bearish momentum persists.

Overall, the bearish pressure in the XLM market is increasing, and we may see a further correction if bears remain in control of the market. The selling pressure is likely to continue until a new support level is established. The key levels are resistance and support levels which are $0.09536 and $0.08871, respectively, which will determine the next direction for XLM/USD.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Stellar (XLM) Token Shows Bearish Pattern After Strong Sell-off appeared first on Coin Edition.

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