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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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of


Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

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