Stellar (XLM) Price Down 10% With Indicators Turning Bearish
star (XLM) price has dropped 10% in the past seven days as the company struggles to maintain its $10 billion market capitalization, which currently stands at $10.87 billion. Momentum indicators such as relative strength index Showing a sharp decline, it indicates increasing selling pressure and may be approaching oversold conditions.
The bearish outlook is further reinforced by the Ichimoku Cloud, with XLM trading below the cloud with no immediate signs of a reversal. Traders are keeping a close eye on the $0.351 support level, as failure to hold could lead to further losses, while a successful rebound could pave the way for a rally towards $0.40 and above.
Stellar RSI is Neutral but Declining
star The relative strength index (RSI) currently stands at 39.9, down sharply from over 60 points two days ago on December 24. This significant drop indicates a rapid loss of buying momentum and a shift towards bearish sentiment.
The move from the previously strong neutral range into lower RSI territory signals increased selling pressure, bringing XLM closer to oversold conditions, although it has not quite entered that zone yet.
RSI is a momentum oscillator that measures the speed and magnitude of price changes on a scale of 0 to 100. Values above 70 indicate overbought conditions, which typically precede a price correction, while values below 30 indicate oversold conditions and may signal a rebound.
and XLM The RSI is at 39.9 and declining rapidly, with the coin teetering on the edge of bearish momentum, indicating that further losses are likely in the near term. If the selling pressure persists, the price of XLM could test lower levels, but if buyers re-enter and stabilize the market, a potential rebound could prevent further losses.
XLM Ichimoku Cloud Shows Strong Bearish Pattern
Ichimoku Cloud Atlas XLM Indicating a bearish outlook, the price is currently trading below the clouds (red and green shaded areas), indicating downward momentum.
The blue conversion line (Tenkan-sen) is below the red baseline (Kijun-sen), further confirming the bearish sentiment and indicating that sellers currently dominate the market. Furthermore, the price has failed to break out of the clouds in recent attempts, thus increasing the strength of the bearish trend.
The lag span (green line) is below the price and cloud, further emphasizing the ongoing bearish pressure.
The Future Cloud (red) shows that Leading Span A (green edge) remains below Leading Span B (red edge), indicating continued bearish sentiment in the near term. These indicators indicate XL price Pressure is likely to remain, and unless there is a significant shift in momentum, there are limited signs of an imminent reversal.
XLM Price Prediction: Will the $0.351 support remain strong?
stellar price The price is currently trading close to the key support level at $0.351.
If this support level cannot be maintained, XL price There may be further bearish pressure and the price could drop to $0.31.
On the other hand, if XLM can hold the $0.351 support and rebound, it may regain upward momentum and test the $0.40 resistance.
Breaking through this resistance may open the door to XLM A further climb could lead to a test of the next important level at $0.47.
Disclaimer
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