Key Support at $0.28 May Influence Stellar (XLM) Price: Analyst
- The current price of Stellar (XLM) is at the $0.28 level, and this could shape its price direction soon.
- Based on the mixed signals RSI and MACD are sending, the momentum could be decreasing.
- A recovery is achievable if the price does not fall below the support level, but breaking down the support could cause the market to drop further.
The price of Stellar (XLM) is at a key point where analyst Ali (@ali_charts on X) sees $0.28 acting as major support. According to him, the next price direction will depend on whether it bounces back or drops down further from this level.
Source: X @ali_charts
He posted a chart highlighting Stellar inside an ascending parallel channel, hovering slightly above the $0.28 support. When the post was made, XLM was trading at $0.284 after touching a low of $0.280.
XLM Trades Just Above Key Support Line
On TradingViews broader market chart, Stellar is now hanging out above the essential $0.28 support line. Todays candlestick depicts a bearish trend, with the current price about $0.282. Over the last day, the price has fallen 1.49%, thus making the $0.28 support level more critical.
Source: TradingView
As long as the level holds, the price could start to rise. But if the pattern is broken, the price could go as low as $0.26 or even further corrections.
The volume of XLM tokens traded today is 56.94 million, so there is some involvement in the market, though not very high. Confirming a reversal or breakdown usually requires a high volume because it usually means traders are closely following any sudden rise or fall in buying or selling.
Stellar Faces Downtrend After May Highs
Technical indicators are showing mixed signals for XLMs price. At the time of writing, the RSI was close to the neutral zone, standing at 49. This means that the market is not oversold; however, its going down, indicating that there are more sellers than buyers at the moment.
The Moving Average Convergence Divergence (MACD) is currently suggesting a bearish trend. At this moment, the MACD is below the signal line, and both are getting close to zero. Oftentimes, such a situation shows the market is slowing down and calls for a drop unless buyers step in.
Stellar price moved higher than $0.33 in May only to fall continuously afterward.
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Read more: https://www.tronweekly.com/support-at-0-28-influence-stellar-xlm-price/
Text source: TronWeekly
