Stellar Price Analysis: XLM Screams Sell as Technical Levels Weaken

Last Updated July 23rd 2021
2 Min Read
  • Stellar's persistent rally stalls at $0.65 as bears swing into action.
  • XLM retreats within an ascending parallel channel.
  • The MACD suggests the trend is still in the bulls' hands.
  • Stellar has grown in value by 12% over the last 24 hours and 21% in seven days. The upswing came into the picture following the dive to $0.39 in April. Investors found an opportunity to enter the market at a lower price, which has seen Stellar rise gradually but consistently.

    The hurdle at $0.64 was an uphill challenge to the bulls; thus, overhead pressure began to rise. XLM teeters at $0.61 at the time of writing while seeking support at $0.6. Unless higher support is secured, the correction may continue in the near term.

    Stellar bows to selling pressure as losses linger

    The cross-border value transfer token is trading within the confines of an ascending parallel channel. Following the rejection from the upper boundary, XLM seeks support either at $0.6 or the middle layer of the channel.

    If both of these anchors fail to hold, the bearish leg will extend to the lower edge. Other support levels to keep in mind include $0.55 and the 100 Simple Moving Average (SMA) at $0.5.

    XLM/USD four-hour chart

     XLM/USD 4-hour chart 050621

    The same four-hour chart reveals that the TD Sequential indicator will likely flash a sell signal in the upcoming sessions. This indicator follows the trend of an asset and identifies positions to sell or to buy. Calls to sell occur in green nine candlesticks, while red nine candlesticks imply that overhead pressure is diminishing and the uptrend is about to start.

    XLM/USD four-hour chart

     XLM/USD 4-hour chart 050621

    According to the chart, a green nine candlestick could manifest in the short-term, adding credence to the bearish outlook.

    Looking at the other side of the picture

    The uptrend has just begun to flip bearish, as the technical outlook shows. Based on the Moving Average Convergence Divergence (MACD) indicator, buyers are in control, as highlighted by the MACD line (blue) position above the signal line. In other words, XLM's uptrend may resume if support at $0.6 holds, allowing bulls to focus on gains beyond $0.65.