Stellar (XLM) Price: Holding Yearly Support or Falling
Stellar crypto is experiencing a bearish price momentum which may last for weeks.
XLM had a bullish period from the beginning of the year to July.
MACD and RSI indicators confirm that Stellar’s price is bearish.
Keywords: Stellar price, XLM price, buy Stellar, Stellar network, Stellar price bounce, Stellar crypto
Introduction
The price of most cryptocurrencies are moving sideways with no clear indication of the direction they will take in the future. Yet, it is important for crypto investors, especially traders, to tell the direction which the price of a specific token or coin may take both in the short term and the long term. This analysis focuses on the possible price movement of the Stellar crypto (XLM) in the short-term.
Stellar Price Analysis
The Stellar crypto was bullish for the greater part of the year until the second week of August when it turned bearish following its announcement of a partnership with Moneygram and Honeycoin. After that development, Stellar launched its cash-in and cash-out services in various countries including Kenya, Senegal, Uganda and Canada.
The rise in its selling pressure within that period led to the decline of its price. However, since the start of July the Stellar price maintained an ascending consolidation within a very narrow market channel. As the number of sellers increased it dithered into a descending triangle, trading below 20, 50 SMA on the four-hour chart.
In previous months XML faced much resistance at the $0.105 level. However, it had a breakout when it reached a new higher low in June. After that there was a Stellar price bounce which resulted in its upward momentum leading to a new yearly peak of $0.195 in July.
However, its price has since fallen again and is moving towards $0.105 where it is likely to face a strong support, which may force it to reverse upward to break its four week downward trend. If it reverses and rises above $0.12 it may face a strong resistance at $0.18.
On the other hand, if it maintains an upward trend it is likely to reach the $0.230 resistance level thereby attaining a 105% rise above $0.105. A breakout below $0.105 may result in a 35% fall that will end at $0.070, a zone of yearly lows which are illustrated in the following graph.
XML Yearly Lows - TradingView
You can easily notice the lowest lows at the bottom of The Graph.
Current XLM Price Performance
We discussed the recent Stellar performance, now let’s look at its current price performance. Investors can buy Stellar at its current price of $$0.128054, after it gained 5.87% within the previous 24-hour period.
Notably, its value has increased by 1.6% within the last 7 days. With a market cap of $3,503,196,197, XLM recorded a trading volume of $109,509,159.78 within the past 24 hours. The following graph shows a clearer picture of its performance within the last 30 days.
30-day Stellar price - CoinGecko
The graph above, indicates that Stellar has a general bearish outlook. For instance on 29 July the Stellar price was $0.166. However, on 24 August it had a value of $0.122. In addition, both the 24-hour and the 7-day periods are bearish. The next diagram shows XLM’s price performance within the last 24 hours.
XLM 24-Hour Price Performance – CoinGecko
The graph indicates that XLM is bearish within the short term period.
Read also: XLM Price Prediction & Forecast for 2023, 2025, 2030
Long Term Stellar Price Outlook
Last week’s technical indicators predicted a bearish momentum for XLM. For example, the Relative Strength Index (RSI) tumbled down a few notches to 55.75 indicating a weakening upward momentum.
The RSI indicator tells whether or not the asset is overbought or oversold. A value above 50, accompanied by an ascending pattern indicates a bullish price momentum. On the other hand, a value less than 50 shows a bearish momentum. The fact that the RSI declined remarkably but remained above 50 has generated conflicting signals. Therefore, by the end of last week XLM had no well-defined price direction.
The MACD indicator also indicated a bearish market for Stellar. Basically, towards the end of the week, there was a bearish MACD crossover on the daily chart. In addition the histogram turned red confirming the trend which the crossover indicated. Those signals gave the XLM bulls a chance to curb its downward price momentum. The next diagram summarizes the changes in both the RSI and MACD indicators.
Technical Indicators Shows Impending Bullish Momentum - TradingView
As observed, both the RSI and MACD indicators show bearish momentum at the end of the previous week.
Investing in Stellar Crypto
Stellar has shown much potential since its inception in 2014. First, the Stellar network provides an important service to the global economy. It provides a payment for average income users, mostly suitable for developing countries. Its transactions are fast, convenient and cheap.
Second, the XLM value has increased significantly from a few cents at its launch to its current value of around $0.128. However, over the years its price has increased to higher figures. For example, it reached $0.73 in May 2021.It is essential to note that XLM exists on many crypto exchanges like Gate.io.
Conclusion
From the beginning of the year the price of Stellar crypto had been rising until July when it started falling. Although it is currently trading at $0.128 its value may fall further. Both RSI and MACD indicators are showing that XLM is bearish at the moment. However, long term investors may buy XLM at Gate.io and hold it to reap better rewards in the future.
FAQs about Stellar (XLM)
Is Stellar a good investment?
Stellar promises to be a good investment since it supports a global payment targeted at average income earners. Its price has been increasing steadily over the years despite some upswings and downswings.
Can I buy Stellar on Gate.io?
You can buy Stellar crypto (XLM) at Gate.io using various payment methods like P2P trading. However, you need to have a verified account to purchase XLM. Stellar is paired with several major cryptocurrencies like BTC, ETH and USDT.
