The price of Stellar (XLM) has decreased by more than 10% in the past 24 hours but has still increased by 94.07% over the past week, leading to a rise among the top 100 cryptocurrencies. Indicators like RSI and Ichimoku Cloud show weakening upward momentum as XLM faces increasing selling pressure.
If the downtrend continues, XLM could test a critical support level at $0.099. However, a recovery could push it back to $0.638 and potentially up to $0.70.
XLM RSI slips into neutral territory.
The RSI currently stands at 48.31, down from above 70 when XLM reached $0.60, the highest price in three years. RSI, or Relative Strength Index, measures momentum on a scale from 0 to 100, with values above 70 indicating overbought conditions and below 30 indicating oversold conditions.
The decline of the RSI reflects the fluctuating momentum as XLM faces correction.
XLM RSI. Source: TradingView
The RSI value of 48.31 places XLM in neutral territory, neither overbought nor oversold. This level suggests that the price of Stellar may continue to decrease before a new rally occurs.
However, if the RSI stabilizes or increases, XLM may regain upward momentum and continue the bullish trend.
Stellar Ichimoku Cloud shows a bearish trend emerging.
The Ichimoku Cloud chart for Stellar shows that the downward momentum is prevailing as the price has moved below the Kijun-Sen (orange line) and Tenkan-Sen (blue line).
This suggests weakening bullish sentiment, with the price close to the edge of the cloud (Senkou Span A and B), which currently provides short-term support. If the price falls deeper into or below the cloud, it may confirm a reversal of the downtrend.
XLM Ichimoku Cloud. Source: TradingView
The cloud itself remains structurally bullish for now, with Senkou Span A rising, but its thin nature suggests weakening support ahead.
If XLM cannot regain levels above the Tenkan-Sen and Kijun-Sen, selling pressure may increase. However, if the price recovers and moves above the cloud, it could signal a return of the recent uptrend.
XLM price prediction: A strong correction if buying pressure does not return.
The EMA lines are still rising, with short-term lines above long-term lines, indicating an overall bullish trend. However, the narrowing gap between these lines suggests weakening upward momentum and a potential shift in sentiment.
This indicates that the ongoing downward trend may accelerate if the buying pressure for XLM does not return soon.
XLM price analysis. Source: TradingView
If the strong downtrend falls below the 50 and 100 EMA lines on the 4-hour chart, the price of XLM could drop sharply to a strong support level at $0.099, corresponding to a significant 76% correction.
On the other hand, if the price of Stellar touches the 50 EMA on the 4-hour chart and regains recent upward momentum, it could retest resistance near $0.638. Breaking above this level could push XLM towards $0.70.