XLM Price Prediction: Stellar Erases Gains, Sliding Under $0.4, But Where Will it Bounce?
- Stellar tumbles from highs close to $0.7 amid increased selling pressure.
- Losing critical support at the 100 SMA is detrimental to the progress made since February.T
- The TD Sequential indicator could flash a buy signal in the coming sessions.
Stellar's uptrend to $0.7 has been dented, leaving investors gasping for air in the sinking 'ship'. The declines are not unique to XLM but have affected most of the crypto assets. For instance, Bitcoin dived under $50,000 while Ethereum seeks support above $2,000 in the wake of losses from $2,600.
Meanwhile, Stellar trades at $0.4 after losing several support areas such as $0.5, the 50 Simple Moving Average (SMA), and the 100 SMA. If the immediate anchor at $0.4 fails to hold, investors should brace for another dip toward $0.25.
Stellar Engages Reverse Gears as Technical Levels Fade
The prevailing technical picture is mainly bearish based on various indicators. The Moving Average Convergence Divergence (MACD) shines the light on the worsening technical levels. For instance, the indicator drops toward the mean line (0.00) and may explore the negative region. Moreover, the MACD line (blue) emphasizes the bearish action after crossing beneath the signal line.
XLM/USD four daily chart
The Relative Strength Index (RSI) has also validated the downtrend as it falls sharply toward the oversold area. However, the indicator reveals that XLM is not oversold yet and may continue to drop in value unless buyers intervene.
The SuperTrend indicator on the daily chart also has a bearish impulse. This indicator usually foresees the trend of an asset and identifies positions to go long or short. In the meantime, the SuperTrend indicator shows that the asset has flipped bearish and the technical picture may last longer.
XLM/USD four-hour chart
Looking at the Other Side of the Fence
The TD Sequential indicator will likely present a signal to buy Stellar in the coming day or days. This call to sell will form in a red nine candlestick. Its occurrence will signify a weakening bearish front as bulls prepare to swing into action. If validated, the signal will see in Stellar recovering in one to four daily candlesticks.
Note that holding the support at $0.4 will significantly signal the return to market stability. Bulls will have the opportunity to increase their positions anticipating an upswing back to $0.65.