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Stellar price analysis: XLM hits a roadblock after week that saw price go as high as $0.42

TL;DR Breakdown

  • XLM price went down over 3 percent on the day’s trade
  • Trading volume increased over 28 percent, confirming seller action in the market
  • Stellar fails to capitalise to the Bitcoin-led rally

Stellar price analysis for the day indicates that the token is set to lose its bullish momentum set in a week that saw price touch a month-long high of $0.42. XLM declined over 3 percent on the intra-day trade to sit at $0.378 at the time of writing, dropping from $0.397. The token failed to capitalise on a bullish crypto market overall, led by Bitcoin‘s massive run to an all-time high. Over the past 24 hours, XLM trading volume increased over 28 percent. Coupled with a decreasing price action, it goes to show significant selling action in place for the token currently.

The larger cryptocurrency market also faced a slight correction after a bullish week, as Bitcoin itself dropped almost 5 percent to sit just above $63,000. Ethereum moved above $4,100 and consolidated, while Altcoins faced similar corrections. Cardano dropped to $2.16 after a slight drop, whereas Dogecoin and Ripple faced a 5 percent decline each. Polkadot dipped 4 percent, while Solana proved to show the only positive movement in the market with a 7 percent rise.

Stellar price analysis: Cryptocurrency heat map. Source: Coin360

XLM/USD 24-hour chart: Evening Star pattern indicates trend change

On the 24-hour chart, appearance of an Evening Star pattern can be seen to confirm change of trend for Stellar. Price rose as high as $0.42 at the start of the week, to consolidate at $0.391 till yesterday. However, over the past 24 hours, rising selling action has taken price just above the crucial 20-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) value of 56.44 still shows a strong valuation for the token, but it has dipped from 61.38 and is expected to decline further along with price.

Stellar price analysis: 24-hour chart. Source: Trading View

XLM/USD 4-hour chart: Price primed to move further below crucial EMAs

On the 4 hour chart, price can be seen declining away from the crucial 20, 50 and 100-day EMAs. The RSI value has dipped to a lowly 43.77, suggesting there is significant undervaluation for XLM in the market. It also justifies the increasing trading volume, indicating majority seller action taking place which can also be seen on the 4-hour chart. The Moving Average Convergence Divergence (MACD) line can also be seen moving below the neutral zone, confirming the upcoming bearish trend that is expected to pick up strength over the next few trading sessions.

Stellar price analysis: 24-hour chart. Source: Trading View

Stellar price analysis: Conclusion

According to majority technical indicators and current price action, Stellar is set to undergo price correction after a bullish week that took price to a month-long high. In the current outlook, sellers will be looking to dominate the market and push price to as low as $0.341, where the current support resides. Any movement below this point could trigger further sell offs to break the $0.30 barrier.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

This post was last modified on October 21, 2021 9:21 pm

Razi Khan

A Master's graduate in Renewable Energy Systems from England, UK, Razi is a tech-enthusiast. He's served as a content specialist for BlockPublisher in the US and has been an avid member of the crypto space as a journalist, trader, investor and analyst since 2018.

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