Stellar (XLM): Examining the Prospects of Long-Term Declines

Table of Contents

Stellar’s long-term squeeze around $0.10611 broke down from a descending triangle formation on the 24-hour chart. However, the most recent liquidations have turned the long-term foundation into instant opposition.

A significant close below the nearest support would open the way for the asset to fall in the coming days. XLM bulls should cause a spike in buying quantity to counteract the dominating bearish inclinations. XLM was trading near $0.1026 at the time of publication.

Excellent Daily Timeframe

Meanwhile, Stellar’s southerly reversals from $0.23 resulted in the daily chart printing a 3-month trend-line challenge. From May 5 to July 13, the substitute token fell by more than 47%. This trend-line challenge, together with the 20 Exponential Moving Average, has helped sellers regain momentum in recent months. XLM printed smaller peaks in the preceding month while maintaining the $0.1061 zine. As a result, a falling triangular pattern formed, favoring selling activities.

Bears who maintain their momentum may target the $0.0987 retest in the next sessions. A close below $0.1019 might send XLM on a downward trajectory. Meanwhile, buyers rejecting bearish efforts may result in a prolonged squeeze period near the POC (Point of Control) at $0.11.

Reasoning

Over the last two weeks, the RSI (Relative Strength Index) has shown negative trends. A longer southerly voyage would help sellers secure new lows. Furthermore, the Chaikin Money Flow has given up its midline support as bears have changed it to opposition in the last several hours. This dip in money volumes may indicate a near-term pause on its charts. Furthermore, the ADX displayed a noticeably weak XML directional trend.

Last Thought

The bearish breach beneath the descending triangle may indicate that XLM will continue to fall in the coming days. Price targets would remain as previously stated. Nonetheless, investors need to consider broad market cues as well as on-chain activity to make informed judgments. Such a move would help to reduce the probability of bearish unconstitutionality.

Following the release of the US CPI statistics, the crypto market saw uptrends, with Bitcoin rising back above $20,000. BTC was trading at $20,785 at the time of writing. Following significant slumps, investors were relieved to see the market remain green today. Nevertheless, the surge could be fleeting, resulting in price declines in the next hours or days.