Stellar Price Moves To A Lower Level, Can The Bulls Defeat This Resistance Mark?
Stellar price has continued to travel south over the last 24 hours. On the last day, XLM lost more than 6% of its market value.
Stellar has recorded positive price sentiment recently, owing to an update that spread optimism across the XLM community.
In the latest update, Stellar users can now transfer USDC and Stellar Lumens via email. Despite the update, technical indicators have sided with the bears on the one-day chart.
The buying power has fallen considerably, even though the number of buyers is greater compared to the number of sellers.
In the last week, Stellar price went up close to 7%. However, at press time, the bulls look exhausted. The present support zone for XLM stands between $0.111 and $0.106, respectively.
A fall from the $0.106 mark will lead the Stellar price to touch the $0.99 price mark.
Broader market support will be necessary for most altcoins to recover. If buyers don’t pick up momentum and XLM doesn’t topple above the 20-SMA, then the altcoin is in for a further drop in price.
Stellar Price Analysis: One Day Chart Stellar was priced at $0.112 on the one-day chart | Source: XLMUSD on TradingViewXLM was trading at $0.112 at the time of writing. The coin could not hold onto its weekly gains and fell on its chart as a result of declining buying strength.
It is important for the bulls to defend Stellar at the $0.111 level, else Stellar price could drop down to $0.106. Once the coin touches the $0.106 mark, it could also fall near the $0.99 level.
Overhead resistance for the coin stood at $ 0.116. A move above that level could push the coin to $0.119. The amount of Stellar traded in the past trading session declined, indicating a fall in buying strength.
Technical Analysis Stellar registered a decline in buying power on the one-day chart | Source: XLMUSD on TradingViewXLM was still not in the excess selling territory, but if buyers continue to decline, sellers will soon take over.
Stellar has had a good past week, but the bulls failed to move past the $0.116 resistance mark, causing the coin to depreciate in price.
The Relative Strength Index was right on the half-line, and that is an indication of an even number of buyers and sellers.
A fall in demand will immediately push the price of Stellar below the 20-SMA line. This would mean that the sellers were driving the price momentum in the market.
Stellar indicated buy signal on the one-day chart | Source: XLMUSD on TradingViewThere could be a chance for Stellar to redeem its price given that XLM continued to display a buy signal on the one-day chart.
The Moving Average Convergence Divergence measures the price momentum and the overall price direction of the altcoin.
The MACD continued to form green signal bars that correlate with the buy signal for the coin. Although the green histograms were declining on the chart as a sign of increased selling strength, sellers had not taken over yet.
The Parabolic SAR displays the price action of the altcoin. The dotted lines below the price candlestick mean that XLM could rise on its chart again with sustained demand.
Featured image from Personal Financial, Chart: TradingView.comText source: NewsBTC
