Stellar (XLM), the 27th ranked cryptocurrency in terms of market capitalization, managed to pump its spot trading price by 2.1% over the last 24 hours.
At press time, according to tracking from Coingecko, the asset is changing hands at $0.112 and has been down by 3.3% and 4.4% on is biweekly and monthly charts, respectively.
Here’s a quick look at XLM’s performance:
- Stellar has once again fallen into a bearish price pattern
- XLM needs to sustain and surpass its current trading price of $0.112 to break from its downward trend
- Stellar forecasted to drop to $0.085 over the next 30 days
The altcoin suffered when it failed to move past the $0.13 resistance marker and fell into a pattern that indicates further downward trend.
XLM’s technical indicators and analysis hint at a continued exposure to negative factors that will prevent it from climbing to higher levels over the next few days.
Repetitive Rejection On Crucial Levels Cripples Stellar
Since the middle part of June, the altcoin was trading at a narrow range of $0.10 and $0.13. XLM tried to test and surpass the aforementioned resistance level but was unsuccessful.
Not only that, it also failed to sustain the crucial support marker of $0.125. As a result, in just two days, the asset declined by 12%. That, however, was erased by its recent price pump.
Stellar’s Relative Strength Index (RSI) is below the 50-neutral zone but it hasn’t reached the point of being overbrought or oversold.
While buyers might seem to be discouraged by these bearish signals, there is a possibility that the downtrend thesis will be invalidated.
This will happen if XLM manages to surpass the $0.112 range. Failure to do so, however, might result to a steep fall all the way down to $0.101.
XLM Price Forecast
According to Coincodex, Stellar has 17 technical indicators that are sending bearish signals while 15 were leaning towards bullish signs.
With this, the crypto is forecasted to slightly increase its trading price to $0.113 over the next five days. The next 30 days, however, will be painful for holders as the altcoin is seen to plummet all the way down to $0.085.
There is also significant level of fear towards the asset as it scored 33 on the Fear and Greed Index. XLM is also facing a high yearly inflation rate of 5.44%.
It has been trading below the 200-day simple moving average and has not shown any signs of performing better anytime soon.
Still, just like with any other cryptocurrency, it is not immune to the volatility of the crypto space so its price can also go high as fast as it goes down, and vice versa.
XLM total market cap at $2.8 billion on the daily chart | Featured image from National Review, Chart: TradingView.com Disclaimer: The analysis is based on the author's personal knowledge and should not be construed as investment advice.
Written by: Source link