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- XLM trades at $0.4318 with a 1.78% daily and 10.22% weekly decline under bearish pressure.
- Bullish flag forms on 4H chart as price tests resistance with targets at $0.475, $0.520, $0.560 and $0.600.
- RSI at 37.71 and bearish MACD show weak momentum while traders await a breakout or more downside.
As of press time, Stellar (XLM) is trading at $0.4318, showing a 1.78% decrease over the past 24 hours. The daily trading volume has declined by 3.83% to $406.7 million. XLM has declined by 10.22% in the last week. The price action portrays continuous bear pressure. Traders are now monitoring a proper breakout or further drop.
Source: CoinMarketCap
XLM Forms Bullish Flag
Analyst Jonathan Carter highlighted that XLM was developing a bullish flag pattern. This arrangement can be seen on the 4-hour chart. Price is converging towards the upper limit of the flag. It is also challenging the 100-period moving trend. In case of an upside breakout, $0.475, $0.520, $0.560, and $0.600 are the targets. The inability to breach beyond resistance may result in selling.
Source: X
Also Read: Bitcoin Strategy Strengthens: Metaplanet Now Holds Over ¥253B in Bitcoin
The relative strength index (RSI) is 37.71. The RSI has dipped below the 50 mark. This indicates a slowdown in bullish movements. When RSI falls below the 30-point mark, there is a potential that XLM may be an oversold coin. That can lead to a rebound or to sustained weakness.
A bearish crossover can be seen in the Moving Average Convergence Divergence (MACD). The MACD line reads -0.0015. It lies below the signal line, which is at -0.0008. The histogram reading also turns out negative at -0.0007. Such a combination asserts that the sellers are dominant. The near-term trend is on the weaker side.
Source: TradingView
Market Interest Declines Sharply
According to CoinGlass data, the total volume decreased by 10.76% to $673.41 million. The Open Interest has decreased by 3.27% to $383.94 million. The OI-weighted funding rate stands at 0.0103%.. It implies more caution in the derivatives market. Leverage traders are looking more bearish.
Source: CoinGlass
Volume is still low compared to the recent highs. There is short direction and choppy price action. Traders are advised to look for a clean breakout above the resistance. Bullish setups could not work without significant volume. In case of further selling pressure, then lower support levels will be enforced.
XLM Faces Critical Phase
The future of XLM in the short run relies on this period of consolidation. A Flag breakout will provide a recovery signal. In case of resistance, new drops can be expected. Technical signals ought to be monitored by traders. The next move will be confirmed with RSI, MACD, and volume.
The participants are still being careful in markets. The price is staying below the key resistance at the 100-MA. There are signs of further downside risk. XLM is currently in a precarious situation. The next 24 hours can tell whether bulls or bears will dominate.
Also Read: Stellar (XLM) Set for Massive Surge as Peter Brandt Predicts $1.51 Breakout
