Stellar, the cryptocurrency and decentralized payment system, has been trading in a bearish manner over the past 24 hours. Stellar (XLM) is currently priced at $0.3550 with a market cap of $8,350,272,086 after experiencing a 10% rise in value within the last day alone. The Stellar token is showing bearish signs as it entered into a falling channel pattern which could potentially signal bearish price movements for XLM holders.
Technical parameters of Stellar
In the last day, XLM has experienced a significant rise in value and is now trading at $0.3550. The stellar coin was previously trading above 0.60 cents back on May 18th but has been steadily decreasing ever since then to experience another sharp decline. In the morning European hours lead to Stellar (XLM) reaching lows around $0.26. Stellar has seen a slight increase in volume in recent days which could be potentially due to investors selling off their XLM holdings as they are concerned about future price movements or because they may believe that bears have already exited.
In terms of market sentiment, XLM is currently experiencing a mixed bag with the coin being ‘Bearsih’ on most exchanges as it trades at $0.3550 (as per CoinMarketCap), but some other platforms are showing Stellar trading at significantly lower prices. The price could see more downward movement in days to come as Stellar has been making a bearish chart pattern called a falling channel. Either side breakout will give significant momentum to the coin. Whereas, RSI is gradually heading towards the oversold zone which needs to improve in upcoming trading sessions.
In our opinion, the Stellar coin price is expected to head downwards and potentially touch $0.30 soon before any bullish rally in the future. But we have not been able to find a clear indication of when a recovery will happen as this largely dependent on market sentiment at that time.
Stellar MACD is projecting mixed-signal, Stellar RSI is projecting negative signals, and the Stellar 14-day Relative Strength Index (RSI) has breached below its 20 day EMA, which implies a bearish divergence that can signal further line slippage to occur in a downward direction.
Mr. Pratik chadhokar is an Indian Equity, Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer.