Stellar trade neutral after price struggle to extend bearish rally
Key points
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The market lack volatility after oversold price stabilisation
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$0.25 and $0.14 maintain demand and supply levels
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Stellar approach smart contract incorporation into its network
According to the recent announcement from the official Stellar Twitter handle, it seems the stellar coin will present room for innovation in 2022, as the company aims to incorporate smart contracts into the stellar network.
While this could leave a positive impact on the value of the asset. However, Stellar is known for its rapid rise in price towards the close of Q1 and its swift fall in the middle of Q2 in 2021.
And ever since the market crash in May, XLM/USD expanded "swing channel" price movement below the $0.9 ATH value.
Though there is no significant evidence if the asset will maintain this bearish momentum for long-duration. After $0.14 and $0.25 have been labelled as the initial near-term support and resistance of the market.
With an optimistic viewpoint on the XLM/USD price chart. It should be noted that if the value of Stellar should find its way above the $0.25 near-term resistance, gaining bullish attractions will be the next event that will be recorded in the market. As the bulls are waiting for the price to cross above the $0.25 near-term resistance.
Technical analysis outlook for XLM/USD price action
To explain XLM/USD technical analysis into a simplified term. That will give the trading decision a profitable entry point. Below is the breakdown of stellar price action from the daily time frame.
Source – TradingView
Amidst the recent oversold condition the market has undergone in the last six days. From the daily price chart, XLM/USD extends short-term sideways price action along the middle of the supply and demand levels.
With a small body candlestick pattern printed on the daily price chart, the market volatility was put on a halt after the Average True Range indicator pointed to the south.
Final thought
While we might be in haste to trade XLM/USD, however, market players should take into consideration the exit and entry points that need to be respected before market orders can be executed.
At the moment, $0.25 is acting as near-term resistance, meaning a break above that level will change the entire ecosystem of XLM/USD into a bullish bias. On the other hand, if the price should dip below $0.149 near-term support, the value of the asset will resume a bearish trend to the south.
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