Stellar (XLM) has experienced mixed market performance, dropping over 10% in the past 24 hours despite a massive 94% gain over the week. Technical indicators now signal weakening bullish momentum as the token faces rising selling pressure.
Key Support and Resistance Levels for XLM
If the current downtrend persists, Stellar may test key support at $0.099. However, a recovery could push the price toward $0.638, with the potential to reach $0.70 if bullish momentum returns.
RSI Reflects Neutral Momentum
The Relative Strength Index (RSI) for Stellar has dropped to 48.31, down from over 70 when XLM hit $0.60, its highest price in three years.
- RSI Insights:
- An RSI above 70 signals overbought conditions.
- An RSI below 30 suggests oversold levels.
At its current level, RSI places XLM in a neutral zone, indicating reduced bullish momentum. Stellar’s price may continue to decline before regaining strength unless the RSI stabilizes or rises.
Ichimoku Cloud Signals Bearish Sentiment
Stellar’s Ichimoku Cloud analysis shows growing bearish momentum:
- The price has fallen below key indicators, the Kijun-Sen (orange line) and Tenkan-Sen (blue line).
- The cloud’s thinning structure suggests weakening support ahead.
If XLM fails to reclaim levels above these indicators, the bearish trend may intensify. However, a recovery above these levels could restore confidence in Stellar’s bullish trajectory.
Price Prediction: A Crossroads for Stellar
Stellar’s Exponential Moving Average (EMA) lines remain bullish, with short-term EMAs above long-term ones. However, the narrowing gap between them signals fading upward momentum.
Scenarios to Watch:
- Bearish Case:
- Selling pressure could push XLM down to $0.099, a sharp 76% correction.
- Bullish Case:
- Renewed buying pressure might help Stellar retest $0.638.
- A breakout above this level could drive the price to $0.70, offering a 62% upside from current levels.
Conclusion
Stellar’s price sits at a pivotal point. With technical indicators highlighting a mix of weakening momentum and possible support, the next few days will determine whether XLM rebounds or succumbs to further declines.
