XLM Value Evaluation: Stellar Coin Is Nonetheless Out Of The Wooden As 20 EMAs Proceed To Stifle Momentum – Cryptocurrency Information – The Market Periodical
- The price of Stellar Coin has seen a sharp drop in price as the overhead resistance of $ 0.29 was rejected
- The price of the XLM coin to be released is $ 0.20 due to a 10% decrease over the past 24 hours
- The XLM / USDT 4-hour chart argues strongly in favor of a bullish reversal
Stellar Coin continues to take revenge under the influence of the Death Cross
Despite the positive market sentiment following the submission of the Stellar Foundation’s reports for the second quarter, XLM price was down 13% in two days. The five-day bearish streak confirmed the token stumbled over its June lows.
While the emerging Death Cross helped pull 50% of its profits overall, the 20th EMA repeatedly belies the bulls’ efforts to keep track of price higher. It appears that the XLM token went to another negative opening this week, completing its bearish streak. For the day ahead, subject to an exaggerated sell-off, the XLM bulls will have to avoid the $ 0.19 support cushion. Loss of that particular level of support will expose the token to an 11% downturn and re-examination of the support level of $ 0.17.
Given that XLM price stumbled over the USD 0.20 support, the bulls will take this opportunity to decide on a reversal. However, at the current price level, the chances of a dead cat bounce are much higher than an actual reversal. As mentioned above, a rebound will take responsibility for the USD 17 support cushion as that particular level is tied to the demand pit.
It is plausible to assume that the XLM price will move at interesting buying levels, which in turn will trigger appropriate buying pressure. Yesterday’s volume of (88 K) was slightly below the 20 period moving average, which is within the range of (103 K). The five-day bearish streak will reverse once the token is gifted with an adequate purchase volume from the demand pit. The occurrence of this scenario is aided by a bullish crossover on the Daily Stochastic RSI.
XLM / USDT on TradingView
XLM Bull Eye divergence on the 4 hour chart
The Stellar Coin’s 4-hour chart offers a broader perspective of what the current price chart is forming. As it stands, price action is constrained within a falling channel. A rejection of the 20th EMA confirmed that XLM price lost 13% of its gains. After a massive fallout, it looks like the token will bounce back, as evidenced by the bullish divergence on the RSI.
The RSI has entered oversold territory for the first time since June, creating the possibility of a massive pullback. This outlook will allow XLM price to catch up to the 20th EMA and confirm a rebound of at least 10%.
On the other hand, a crucial closing price below the USD 0.19 support will jeopardize the current price trend with further losses and invalidate the bullish outlook.
SUPPORT: $ 0.20, $ 0.17
RESISTANCE: $ 0.29, $ 0.32