The price of Stellar (XLM) has fallen over 10% in the last 24 hours but still maintains a 94.07% gain over the past week, standing out in the top 100 cryptocurrencies. Indicators such as RSI and the Ichimoku Cloud show that the upward momentum is weakening as XLM faces increasing selling pressure.
If the bearish trend continues, XLM could test an important support level at $0.099. However, if it recovers, it may target the level of $0.638 and potentially reach $0.70.
RSI of XLM Slips to Neutral Zone
The RSI index of Stellar is currently at 48.31, down from over 70 when XLM reached $0.60, the highest price in the past three years. RSI, or Relative Strength Index, measures momentum using a scale from 0 to 100, with values above 70 indicating overbought conditions and below 30 indicating oversold conditions.
The decline in RSI reflects a decrease in upward momentum as XLM faces a correction.
XLM RSI. Source: TradingView
With an RSI of 48.31, XLM is in the neutral zone, neither overbought nor oversold. This suggests that the price of Stellar may continue to decline before a new rally begins.
However, if RSI stabilizes or increases, XLM could recover its upward momentum and re-establish its bullish trend.
The Ichimoku Cloud of Stellar Indicates a Bearish Trend Emerging
The Ichimoku Cloud chart of Stellar is showing that the bearish momentum is prevailing as the price has fallen below Kijun-Sen (orange line) and Tenkan-Sen (blue line).
This indicates that bullish sentiment is weakening, with the price close to the edge of the cloud (Senkou Span A and B), currently providing short-term support. If the price continues to fall into or below the cloud, it could confirm a reversal of the bearish trend.
XLM Ichimoku Cloud. Source: TradingView
The cloud itself still maintains a bullish structure as Senkou Span A is rising, but its thinness signals a weakening of support ahead.
If XLM cannot reclaim the levels above Tenkan-Sen and Kijun-Sen, selling pressure may further intensify. However, if the price recovers and breaks above the cloud, it could signal the continuation of the recent upward trend.
XLM Price Forecast: Significant Correction If Buying Pressure Does Not Return
The EMA lines of Stellar remain optimistic, with short-term lines above long-term lines, indicating an overall upward trend. However, the narrowing gap between these lines suggests that the upward momentum is weakening and a change in sentiment may occur.
This suggests that the current bearish trend may increase if buying pressure for XLM does not return soon.
XLM Price Analysis. Source: TradingView
If the bearish trend strengthens, the price of XLM could drop significantly to the strong support level at $0.099, corresponding to a major correction of 76%.
On the contrary, if the price of Stellar regains its recent upward momentum, it could retest the resistance level near $0.638. Breaking this level could push XLM up to $0.70, offering a potential advantage of 62% from the current level.
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