Stellar (XLM) price is down more than 10% in the past 24 hours but remains up 94.07% in the past week, leading to gains among the top 100 cryptocurrencies. Indicators such as RSI and Ichimoku Cloud are pointing to weakening bullish momentum as XLM faces increasing selling pressure.
If the downtrend continues, XLM could test the major support at $0.099. However, a recovery could push it back towards $0.638 and possibly as high as $0.70.
XLM RSI Slips Into Neutral Zone
Stellar RSI is now at 48.31, down from above 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 indicating oversold conditions.
The decline in the RSI reflects a decrease in bullish momentum as XLM faces a correction.
The RSI at 48.31 puts XLM in a neutral zone, neither overbought nor oversold. This level suggests that Stellar price could continue to decline before a new high occurs.
However, if the RSI stabilizes or rises, XLM could regain bullish momentum and resume its uptrend.
Stellar's Ichimoku Cloud Shows the Emerging Bearish Trend
The Ichimoku Cloud chart for Stellar shows that bearish momentum is taking over as the price moved below the Kijun-Sen (orange line) and Tenkan-Sen (blue line).
This indicates a weakening of bullish sentiment, with the price approaching the edge of the cloud (Senkou Span A and B), which is currently providing short-term support. If the price drops further into or below the cloud, it could confirm a reversal of the downtrend.
The cloud itself remains bullish in structure currently, with Senkou Span A rising, but its thin nature suggests weak support ahead.
If XLM fails to reclaim levels above Tenkan-Sen and Kijun-Sen, selling pressure may increase. However, if the price recovers and moves above the cloud, it may indicate a resumption of the recent uptrend.
XLM Price Prediction: Strong Correction If Buying Pressure No Longer
Stellar’s EMA lines remain bullish, with the short-term lines above the long-term lines, indicating an overall uptrend. However, the narrowing gap between these lines indicates weakening bullish momentum and a possible change in sentiment.
This suggests that the ongoing downtrend may accelerate if XLM buying pressure no longer exists soon.
If the downtrend intensifies, XLM price could see a sharp decline to its strong support at $0.099, which would represent 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 potential 62% upside from current levels.