Stellar (XLM) accelerated on the daily chart as the coin recorded an upward move. The coin traded in a descending channel. Although the coin was moving sideways, if the bulls recover the chart, XLM may break above the channel.
The technical outlook for the coin remained bearish. The buying force also remained considerably weak. The recent sell-off in the market caused the coin to lose its support line at $0.107. If the coin does not break above the resistance bar of $0.107, the altcoin should lose some of its value again.
Buying strength must re-establish itself in the market for the altcoin to cross the descending trendline. For the bearish thesis to be invalidated, it is important that Stellar is trading above $0.113. For Stellar to sustain its rally, buying force must immediately re-enter the market. The global cryptocurrency market capitalization today is $968 billion with a 2.0% positive change in the last 24 hours.
Stellar Price Analysis: Four-Hour Chart
XLM was trading at $0.106 at the time of writing. The coin attempted to break above the descending line, but the drop in buying strength took the price below the $0.107 mark. If the coin manages to trade above the $0.107 mark, it could go back to $0.113.
Trading above the $0.113 level will help the bearish thesis to be invalidated. If XLM loses its current price level, it could fall to $0.099. The amount of Stellar traded has fallen on the chart, meaning less buying strength. If the buying strength continues to remain weak, the coin may plunge to the $0.099 level.
Technical analysis
The altcoin has seen a decline in buying strength as seen by technical indicators. The Relative Strength Index was trading near the half line after noting a decline. This decline meant that buyers exited the market. If the buying pressure continues in this momentum, the RSI will soon fall below the zero line.
Stellar’s price was slightly above the 20-SMA, indicating that buyers were driving price momentum in the market. Although the buyers still outnumber the sellers, it is not enough for the coin to register a price increase in the next trading sessions.
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XLM’s buying strength remained weak on the chart. In line with the same, Chaikin Money Flow, which describes capital outflows and inflows, showed a decline. Although the CMF was positive, capital inflows remained weak.
Awesome Oscillator points to price direction and momentum. AO became positive and displayed green histograms. These green histograms reflected a change in price direction as well as a buy signal. Despite a buy signal, if buyers do not act, Stellar’s upward move will be blocked.
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Featured image from VOI.ID, chart from TradingView.com