Stellar (XLM) Could Grow Dim This Week, But Buyers Don’t Need To Back Down

Christian Encila

2 years ago

3 mins read

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Stellar (XLM), the 27th ranked cryptocurrency in terms of market capitalization, managed to pump its spot trading price by 2.1% over the last 24 hours.

At press time, according to tracking from Coingecko, the asset is changing hands at $0.112 and has been down by 3.3% and 4.4% on is biweekly and monthly charts, respectively.

Here’s a quick look at XLM’s performance:

Stellar has once again fallen into a bearish price pattern
XLM needs to sustain and surpass its current trading price of $0.112 to break from its downward trend
Stellar forecasted to drop to $0.085 over the next 30 days

The altcoin suffered when it failed to move past the $0.13 resistance marker and fell into a pattern that indicates further downward trend.

XLM’s technical indicators and analysis hint at a continued exposure to negative factors that will prevent it from climbing to higher levels over the next few days.

Repetitive Rejection On Crucial Levels Cripples Stellar

Since the middle part of June, the altcoin was trading at a narrow range of $0.10 and $0.13. XLM tried to test and surpass the aforementioned resistance level but was unsuccessful.

Source: TradingView

Not only that, it also failed to sustain the crucial support marker of $0.125. As a result, in just two days, the asset declined by 12%. That, however, was erased by its recent price pump.

Stellar’s Relative Strength Index (RSI) is below the 50-neutral zone but it hasn’t reached the point of being overbrought or oversold.

While buyers might seem to be discouraged by these bearish signals, there is a possibility that the downtrend thesis will be invalidated.

This will happen if XLM manages to surpass the $0.112 range. Failure to do so, however, might result to a steep fall all the way down to $0.101.

XLM Price Forecast

According to Coincodex, Stellar has 17 technical indicators that are sending bearish signals while 15 were leaning towards bullish signs.

With this, the crypto is forecasted to slightly increase its trading price to $0.113 over the next five days. The next 30 days, however, will be painful for holders as the altcoin is seen to plummet all the way down to $0.085.

There is also significant level of fear towards the asset as it scored 33 on the Fear and Greed Index. XLM is also facing a high yearly inflation rate of 5.44%.

It has been trading below the 200-day simple moving average and has not shown any signs of performing better anytime soon.

Still, just like with any other cryptocurrency, it is not immune to the volatility of the crypto space so its price can also go high as fast as it goes down, and vice versa.

XLM total market cap at $2.8 billion on the daily chart | Featured image from National Review, Chart: TradingView.com

Disclaimer: The analysis is based on the author's personal knowledge and should not be construed as investment advice.

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.