Stellar (XLM) Price Bullish Momentum Fades After 94% Weekly Gains

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As a seasoned researcher with years of experience analyzing cryptocurrency markets, I find myself constantly impressed by the unpredictable nature of Stellar (XLM). Over the past week, we’ve witnessed an impressive 94% surge, yet in the last 24 hours, XLM has taken a tumble, shedding over 10%.

Stellar’s (XLM) price has been down over 10% in the last 24 hours but has remained up 94.07% in the past week, leading to gains among the top 100 cryptocurrencies. Indicators like the RSI and Ichimoku Cloud suggest weakening bullish momentum as XLM faces growing selling pressure.

Should the current decline persist, Stellar (XLM) might encounter significant support around 0.099 USD. On the flip side, if there’s a recovery, XLM could bounce back to approximately 0.638 USD and possibly reach even higher levels near 0.70 USD.

XLM RSI Slips to Neutral Zone

Currently, the Stellar RSI stands at 48.31, a decrease from the 70-mark it held when XLM reached its three-year high of $0.60. The RSI, or Relative Strength Index, is a tool that gauges momentum and ranges between 0 and 100. Values above 70 indicate overbought conditions, while numbers below 30 point towards oversold conditions.

The drop in RSI reflects reduced bullish momentum as XLM faces a correction.

48.31 as the Relative Strength Index (RSI) for XLM indicates it’s currently in a balanced phase, neither showing signs of being overbought nor oversold. The stable RSI reading implies that Stellar’s price may potentially decrease further before experiencing another rise.

However, if RSI stabilizes or rises, XLM could regain upward momentum and resume its bullish trend.

Stellar Ichimoku Cloud Shows Bearish Trend Is Appearing

In simpler terms, the Ichimoku Cloud chart for Stellar suggests a shift towards downward trends since the price has dipped below both the Kijun-Sen (orange line) and the Tenkan-Sen (blue line), indicating bearish momentum.

Based on my years of trading experience and analysis of market trends, I have observed that when the price approaches the edge of the Senkou Span A and B cloud, it often signals a weakening bullish sentiment. In such situations, the cloud usually acts as temporary support. However, if the price falls further into or below the cloud, it could potentially confirm a bearish trend reversal. I have witnessed this pattern multiple times in my trading journey, and it’s essential to keep an eye on these indicators to make informed decisions.

For the moment, the cloud maintains an optimistic shape, as indicated by the ascending Senkou Span A. However, the dwindling density of the cloud hints at potential decreasing support in the near future.

If XLM doesn’t manage to surpass its Tenkan-Sen and Kijun-Sen lines, there might be an increase in selling activity. But if XLM rises again and breaks through the cloud, this could suggest a continuation of the latest upward price movement.

XLM Price Prediction: A Strong Correction If Buying Pressure Doesn’t Get Back

The EMA (Exponential Moving Average) lines from Stellar continue to show a positive trend, as the shorter term lines consistently sit above their longer counterparts. This pattern typically indicates a continuous upward movement. But it’s worth noting that the distance between these lines is becoming smaller, which might imply a decrease in bullish energy and possibly a change in market sentiment.

This suggests that the current downward trend might intensify if the demand for XLM, as indicated by purchasing activity, does not resume promptly.

As an analyst, if the current downward trend persists, I foresee Stellar’s (XLM) price plummeting significantly, potentially reaching the robust support level around $0.099 – a decline that equates to approximately 76%. This potential correction would be quite substantial in our market context.

If Stellar’s price continues its previous bullish trend, it may challenge the resistance around $0.638 once more. Overcoming this barrier could potentially propel Stellar towards $0.70, presenting an estimated 62% growth opportunity from its current position.

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2024-11-26 22:55