Analysis of Stellar (XLM) Token Price Movement

Stellar (XLM) token experienced a significant decline of over 17% in the past month, coupled with a spike of more than 34% in trading volume, indicating heightened selling pressure.

Stellar (XLM) operates as an open-source blockchain facilitating peer-to-peer transactions. The recent trading pattern showcased a pronounced downtrend with the emergence of a range breakdown last week.

Since the beginning of 2024, the price of XLM has largely traded within a narrow range, exhibiting sideways movement. Although a false breakout was detected in March, the token swiftly reverted back into the range, fluctuating between $0.1000 and $0.1400.

A notable event occurred last week as XLM witnessed a breakdown from its prolonged consolidation phase, triggering a subsequent wave of selling pressure. The token plummeted to its yearly lows at $0.0850, portraying a bearish outlook on the price chart.

The persistent underperformance of XLM draws attention to concerns regarding its relative strength and market positioning. Its descent below crucial moving averages signifies a deep decline, suggesting an unfavorable long-term growth trajectory.

Stellar’s Bearish Trend: Price Analysis Insights

The price of XLM has retraced over 90% from its all-time high of $0.9381 and appears to be entrenched in a bearish trajectory. Notably, significant figures in the crypto community, like @Zaven The Rapper, highlighted a potential buying opportunity in the XLM chart.

Presently, the Stellar token is exchanging hands at $0.08906, reflecting a 2.49% intraday decline, hinting at bearish signals within the market. The token has recorded monthly and yearly return rates of -15.30% and -18.30% respectively, indicative of a prevailing downtrend.

Price Volatility and Sentiment Analysis

During the prolonged downtrend, the sentiment data displayed a negative bias, hovering below the midline at approximately -0.69.

Price volatility remained subdued, holding steady around 0.01, illustrating a consistent decline over recent trading sessions.

The XLM/BTC pairing stands at 0.00000154 BTC, with a market capitalization of $1.79 billion. Market analysts express bearish sentiments, anticipating further erosion in XLM gains and a resumption of underperformance.

Recently, the token broke out of a four-month consolidation phase, initiating a selloff that caught bulls off guard, resulting in a panic-induced slide on the price chart.

If bears intensify their selling pressure, XLM could extend its decline towards $0.0500 in the coming weeks. Conversely, a shift in market sentiment leading to buyer momentum could enable a notable reversal, with $0.100 serving as a critical level to surpass.

Among 26 technical indicators analyzed, only 1 signalled a buy, while 15 indicated a sell and 10 remained neutral.

The trading volume surged by 42.85% to $75.22 million, reflecting heightened selloff activity based on volume and observed short position additions.

XLM holds the 50th position in market capitalization, with a total token supply of 50 billion. Immediate support levels are identified at $0.0850 and $0.830, while key resistance levels are positioned around $0.900 and $0.970.

The descent of XLM below crucial moving averages reinforces the bearish sentiment, with the $0.100 threshold serving as a pivotal marker determining the dominance of sellers and the potential for further downside extension.

Disclaimer

This article serves purely informational purposes and does not offer financial or investment advice. Neither the author nor any individuals mentioned herein are liable for any financial losses resulting from investment decisions. It is advisable to conduct thorough research before engaging in financial activities.