Traders Eye Key Support Levels as Stellar’s XLM Consolidates Recent Gains – Time to Buy the Dip?
Stellar’s native token, XLM, has experienced a tumultuous month. Over the past 30 days, the price of XLM has seen a modest decline of 4%. This downtrend is not isolated to Stellar alone. Ripple’s XRP, a cryptocurrency often seen as a close counterpart to Stellar, has also been on a downward trajectory, plummeting by a significant 12% in just the last 24 hours.
However, the market is ever-changing, and recent patterns, according to altFINS, suggest a potential shift in Stellar’s price dynamics. After breaking free from a Falling Wedge pattern, a classic bullish reversal pattern, XLM’s price surged to a peak of $0.19. This rapid ascent pushed the Relative Strength Index (RSI) above 75, indicating an overbought market condition. As a result, traders swiftly capitalized on this uptrend, leading to increased selling pressure.
Following this spike, XLM experienced a bearish breakout from a Flag pattern. This technical formation typically suggests a continuation of the prevailing trend. As of now, the nearest minor support for XLM stands at $0.13. For traders and investors, this could present an opportune entry point, and it would be prudent to set a price alert for this level.
Current Market Trend:
- Short-Term: Neutral
- Medium-Term: Uptrend
- Long-Term: Uptrend
Delving deeper into the momentum indicators, the Moving Average Convergence Divergence (MACD) line currently sits below the MACD Signal Line, signaling a bearish trend. However, with the RSI hovering around the 50 mark, the market sentiment remains neutral. Interestingly, the rising MACD Histogram bars hint at a potential momentum shift, suggesting that an upswing might be on the horizon.
Key Support and Resistance Levels:
- Support Zones:
- Primary: $0.130 (previously acting as resistance)
- Secondary: $0.100
- Resistance Zone: $0.190
While the short-term outlook for XLM remains neutral, the medium and long-term trends are bullish. As always, traders should keep a close eye on key support and resistance levels and utilize momentum indicators to make informed decisions.
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