XLM Uploaded Down, But Buyers Can Take Advantage Here

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.

  • Stellar chart pattern shows that a drop to $0.1 may start soon
  • The market structure and momentum have also been in favor of sellers recently

Stellar saw a sudden rejection at the $0.13 resistance and has since lost 15% of its value. The formation of a bearish chart pattern, together with the higher time frame of the market, indicates the possibility of further losses.

Below are AMBCrypto price predictions for Stellar [XLM] 2022-23

Short traders can look for a breakout below this pattern to reinforce their conviction. A retest of the short-term support level, in case of a move south, can be used to sell XLM.

Range and triangle formations suggest that XLM may head towards $0.1 again

Source: XLM/USDT on Tradingview

Bluemarked has been a variety that has been trading on Stellar since mid-June. It ranged from $0.13 to $0.1. Over the past two months, Stellar has climbed from range lows to highs. At the time of writing, it is in the middle of another bearish move.

Just over two weeks ago, a retest of the tops of the range saw XLM face sharp rejection. It failed to hold the short-term support level at $0.125 and fell by 12% in two days.

Over the past two weeks, XLM has formed a descending triangle (white) pattern. Some support was seen at $0.108. Given the bearish momentum of the past few weeks, it was very likely that this pattern could see a bearish movement.

The RSI remained neutral below 50 to add credence to this notion. However, it has not reached overbought or oversold territory in recent months, which showed a range formation. OBV also fell below the support level earlier this month.

The Fibonacci retracement levels (in yellow) showed that a move above $0.112 might invalidate the bearish notion above. Meanwhile, the 23.6% extension level at $0.101 is near the low of the range and could be used for profit taking.

A move below the $0.125 mark can be used and retested later to enter a short position.

Flat OI within the pattern and negative funding rate show the strength of the seller

star [XLM] Preparing another down after a bearish chart development

Source: feeling

Funding rate was negative after the first week of October. This matches XLM’s decline from the range tops at $0.13. The previous positive funding rate quickly fell into negative territory.

At the time of publication, the funding rate showed that short positions paid for long positions and futures market participants remained bearish.

Development activity has been good over the past few months, although the past two weeks haven’t seen much activity.

star [XLM] Preparing another down after a bearish chart development

Source: Coinglass

Open interest has been fairly steady over the past two weeks. During the same period, XLM formed a descending triangle pattern on the charts. In the event of a breakout to either side (possibly lower), an increase in OI may indicate conviction in the direction of the movement.

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