Stellar (XLM) price has fallen 10% over the past seven days as it struggles to maintain its $10 billion market cap, currently at $10.87 billion. Momentum indicators such as the RSI are showing a sharp decline, signaling increased selling pressure and a possible approach to oversold conditions.
The Ichimoku Cloud is bearish for XLM as it trades below the cloud. Losing the $0.351 support could trigger further declines, while a bounce could lead to a recovery to $0.40.
Stellar’s RSI is neutral but falling
Stellar’s Relative Strength Index (RSI) is currently at 39.9, a sharp drop from over 60 just two days ago on December 24. This significant drop indicates a rapid loss of buying momentum as the market moves towards a bearish sentiment.
The shift from a strong neutral range into lower RSI territory suggests increasing selling pressure, bringing XLM closer to oversold conditions, although it has not fully entered that zone yet.
XLM RSI. Source: TradingView
The RSI measures the speed of price changes (0-100). Above 70 indicates overbought and possible correction; below 30, oversold and chance of rebound.
With XLM's RSI at 39.9 and falling rapidly, the coin is on the verge of bearish momentum, signaling the possibility of further declines in the near term. If selling pressure continues, XLM price could test lower levels, but if buyers return and stabilize the market, a potential rebound could prevent further losses.
XLM’s Ichimoku Cloud Shows Strong Bearish Setup
The Ichimoku Cloud chart for XLM indicates a bearish outlook as the price is currently trading below the cloud (red and green shaded areas), signaling downward momentum.
The blue conversion line (Tenkan-sen) is below the red base line (Kijun-sen), further confirming the bearish sentiment and suggesting that sellers are currently dominating the market. Furthermore, the price has failed to break above the cloud on recent attempts, reinforcing the strength of the downtrend.
XLM Ichimoku Cloud. Fonte: TradingView
The lagging line (green line) is positioned below both price and the cloud, further emphasizing persistent bearish pressure.
The future cloud (red) indicates bearish sentiment, with line A below B, suggesting that the XLM price will remain under pressure with no clear signs of reversal.
XLM Price Prediction: Will $0.351 Support Hold Strong?
Stellar price is currently trading close to a critical support level at $0.351.
If this support fails to hold, XLM price could face further downward pressure, with the price potentially falling to $0.31.
XLM Price Analysis. Source: TradingView
On the other hand, if XLM manages to hold above the $0.351 support and recover, it could regain upward momentum and test the resistance at $0.40.
Breaking this resistance could pave the way for XLM to move higher, potentially testing the next significant level at $0.47.
The article Stellar (XLM) may lose market value; understand was first seen on BeInCrypto Brasil.
