XLM Price Prediction: Stellar Prepares for Another Dip to $0.3
- Stellar price rejected from $0.35 as losses to $0.3 linger.
- The SuperTrend indicator sell signal extends as overhead pressure intensifies.
Stellar had gradually recovered from the support established at $0.3 before running into intense resistance at $0.35. A rejection from the seller congestion is underway, with the cross-border money transfer token trading at $0.34.
If the 100 Simple Moving Average (SMA) short-term support on the four-hour chart fails to hold, we can expect the down leg stretch toward the primary support at $0.3.
Stellars’ bulls run out of options as declines beckon
The SuperTrend indicator presented a sell signal on June 7. One week down the line, the call to sell is still intact. This means that sellers have the upper hand, notwithstanding the recent upswing to $0.35.
It is worth noting that the SuperTrend is a trend-tracking overlay on the asset’s chart, resembling a moving average. The tool shows the direction of the trend and is mainly used in trending markets because it can give false signals in ranging price actions. The true average range (ATR) is critical in the SuperTrend, especially when coming up with the true value and considering the degree of volatility.
XLM/USD four-hour chart
The SuperTrend flashes a sell signal when it closes above the asset’s closing price, as highlighted on the chart. On the other hand, a buy signal comes into the picture when the SuperTrend closes below the closing price.
Stellar may drop further as long as the technical picture on the four-hour chart remains unchanged. Besides, the Relative Strength Index (RSI) shows that bears are getting more aggressive by the minute. Movement below the midline and toward the oversold region could see the downtrend gaining traction.
What could invalidate Stellar price bearish outlook?
The immediate support at the 50 SMA has to hold firmly to halt the retreat from the resistance at $0.35. With support at this level intact, bulls will focus on pushing XLM above $0.35. A four-hour close above $0.35 would trigger more buy orders, creating enough tail force for gains aiming for $0.4 and $0.42 levels, respectively.