Stellar (XLM), a coin that registered an upward movement, picked up speed on the daily charts. Trading has been in a downward channel for the coin. Although the coin moved sideways, bulls can reclaim it and break the channel.
The coin’s technical outlook remained bearish. The buying power was very weak. A recent selloff in the market caused the altcoin to drop below its $0.107 support mark. The altcoin will lose some value if it does not reach $0.107 resistance.
To break the downward trendline, altcoin must show buying strength. Stellar must trade at least $0.113 to invalidate the bearish thesis. Stellar must immediately return to the market with buying power in order to continue its recovery. Today, there is a $968 Billion global cryptocurrency market. 2.0%Positive changes in the past 24 hours
Stellar Price Analysis: Four Hour Chart
At the time of writing, XLM was traded for $0.106. The price of XLM tried to go above the downward line but the decline in buyer strength has pushed it down below the $0.107 level. The coin could revert to $0.113 if it trades above $0.107.
Bearish sentiments will not be validated if the price of XLM is above $0.113. If XLM drops below its current price, it may fall as low as $0.099. Stellar’s volume traded decreased on the chart, which means that there was less buying power. The $0.099 mark is where the coin will plunge if the buying power remains low.
Technical Analysis
As per the technical indicators, altcoin’s buying strength showed signs of decline. After a decline, the Relative Strength Index traded close to half-line. This market downturn meant that buyers left. If buyers continue to buy, RSI may soon fall below zero.
The Stellar price was slightly higher than the 20-SMA, which indicated that buyers were driving market momentum. Although buyers are still more in number compared to sellers, it isn’t enough for the coin to register increased price over the upcoming trading sessions.
Similar Reading: Short Liquidations Rise As Bitcoin Gains More Than $20,000| Short Liquidations Climb As Bitcoin Recovers Above $20,000
XLM’s buying strength has remained low on the chart. Chaikin’s Money Flow, which tracks capital outflow and inflows, also showed an increase. CMF is positive but capital inflows are still low.
The Awesome Oscillator indicates price momentum and direction. AO was positive and showed green histograms. These histograms were positive and showed a buy signal. Despite a buy signal, if buyers don’t act on it then Stellar’s upward movement will be stalled.
Similar Reading: Bitcoin Funding Rate Changes Highly Positive. Long Squeeze in The Making| Bitcoin Funding Rate Turns Highly Positive, Long Squeeze In The Making?
Featured image taken from VOI.ID and chart by TradingView.com