Stellar Price Analysis: XLM at risk of losing 35% of its growth as buy signals fade

In this post:

TL;DR Breakdown

  • Stellar price analysis highlights XLM’s price movement past the symmetrical triangle.
  • Despite moving past the symmetrical triangle, a critical resistance barrier denies Stellar the price surge before it starts.
  • Stellar has 2 bullish technical patterns engulfing its 12-hour candlestick, but they fail to have enough momentum.
  • At present, the 200-day Simple Moving Average stands as a crucial support line for Stellar in the near term.

During the start of trading on Wednesday, Stellar was recording positive price movements with prospects of registering a bull run. However, the lower trend line of the descending channel appears to be resisting Stellar’s bullish outlook. Coupled with a weak price rally, Stellar stands exposed to a significant price decline if the general crypto market turns red.

Stellar Price Analysis: General price overview

During the recent May 19 market crash, Stellar depreciated past key technical levels. Some of the technical levels include the 50-day Simple Moving Average (SMA), the lower trend line of the descending channel, and the 200-day Simple Moving Average. The May 19 market crash was so severe for Stellar that it saw the crypto coin plunge to one of the worst pockets of anxiety while eliminating even the frailest of XLM holders. Fortunately for Stellar, the crypto coin recorded a 50 percent price rebound that saw it break above the lower trend line of the descending channel.

Despite the positive price movement, Stellar’s moment of reprieve proved short-lived as its price took another beating that pushed it below the May 19 low. This evacuated most of the remaining investors the coin had, preparing XLM for an actionable bottom. Since then, Stellar has been forming an ascending symmetrical triangle. The positive price movement has been maintained ever since, including a significant price rally on Stellar’s June 1 12-hour candlestick. Despite this, the lower trend line of the descending channel has proved cumbersome to overcome, emerging as a key resistant barrier.

Stellar price movement in the past 24 hours

Source: TradingView

Usually, for a bullish engulfing pattern to emerge, a crypto coin has to start the day at a lower price tag than the previous bar and close the day at a higher price than the opening price. The bullish engulfing pattern highlights a day where bears controlled the crypto price during the early morning trading session. This is followed by the bulls taking over the price as the day proceeds. According to previous patterns, bullish engulfing candlesticks tend to be more potent if they follow a bearish leg.

At the time of writing, Stellar is exchanging hands at around $0.418. At present, Stellar bulls have a tough task in bypassing critical resistance barriers, especially the $0.45 lower trend line. If Stellar manages to close the day above this critical level, the next resistance level to break above would be the 38 percent Fibo extension level at around $0.48. Coincidentally, the 38 percent Fibo extension level coincides with the 200 12-hour Simple Moving Average at $0.48.

Stellar 4-hour chart

Source: TradingView

According to Stellar’s 4-hour chart, the Relative Strength Index (RSI) currently stands at around 44, showing the crypto coin is trending in the negative region. This shows the crypto coin is currently experiencing heightened selling orders to give the bears an open field. As for the Moving Average Convergence Divergence (MACD), Stellar is currently trading below the signal line, confirming the bearish outlook.


At present, Stellar enjoys a strong support level at around $0.343. If the crypto coin plunges towards May 19 low at around $0.3, the crypto coin could record further price declines that might amount to a 35 percent depreciation from its current price.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com 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.

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