Stellar (XLM) price has fallen over 10% in the past 24 hours but is up 94.07% over the past week, leading gains among the top 100 cryptocurrencies. Indicators such as the RSI and Ichimoku Cloud suggest weakening bullish momentum as XLM faces increasing selling pressure.
If the downtrend continues, XLM could test the key support at $0.099. However, a recovery could push it back to $0.638 and potentially even $0.70.
RSI from XLM falls to neutral zone
The Stellar RSI is now at 48.31, down from 70 when XLM hit $0.60, its highest price in three years. The RSI, or Relative Strength Index, measures momentum on a scale of 0 to 100, with values above 70 indicating overbought conditions and below 30 suggesting oversold conditions.
The drop in RSI reflects reduced bullish momentum as XLM faces a correction.
XLM RSI. Source: TradingView
An RSI of 48.31 puts XLM in a neutral zone, neither overbought nor oversold. This level suggests that Stellar's price could continue falling before a new rally occurs.
However, if the RSI stabilizes or rises, XLM could regain bullish momentum and resume its uptrend.
Stellar’s Ichimoku Cloud Shows Bearish Trend Emerging
The Ichimoku Cloud chart for Stellar shows bearish momentum dominating as the price moved below the Kijun-Sen (orange line) and the Tenkan-Sen (blue line).
This indicates weakening bullish sentiment as the price approaches the edge of the cloud (Senkou Span A and B), which currently provides short-term support. If the price breaks further into or below the cloud, it could confirm a bearish trend reversal.
XLM Ichimoku Cloud. Fonte: TradingView
The cloud itself remains bullishly structured for now, with a rising Senkou Span A, but its thinning nature suggests weakening support ahead.
If XLM fails to reclaim levels above the Tenkan-Sen and Kijun-Sen, selling pressure may intensify. However, if the price rebounds and moves above the cloud, it may signal the resumption of the recent uptrend.
XLM Price Prediction: A Strong Correction If Buying Pressure Doesn’t Return
Stellar’s EMA lines remain bullish, with short-term lines above the long-term ones, indicating an overall bullish trend. However, the narrowing gap between these lines suggests weakening bullish momentum and a possible shift in sentiment.
This signals that the ongoing downtrend could accelerate if XLM buying pressure does not return soon.
XLM Price Analysis. Source: TradingView
If the downtrend strengthens, XLM price could see a sharp decline towards its strong support at $0.099, representing a significant 76% correction.
On the other hand, if Stellar price regains its recent bullish momentum, it could retest the resistance near $0.638. Breaking this level could push XLM towards $0.70, offering a 62% upside potential from current levels.
The article Stellar (XLM) rally loses steam after 94% gains appeared first on BeInCrypto Brasil.
