Despite the strong growth achieved, Stellar's (XLM) RSI has dropped to 50.5, indicating neutral momentum after the overbought phase at the end of November.
Meanwhile, XLM is facing significant resistance levels at $0.53 and $0.56. Its EMA lines still show a bullish pattern, but there are signs of weakening short-term momentum. The Ichimoku Cloud indicator suggests a potential change in market sentiment.
XLM's RSI is in the neutral zone
Stellar's RSI is currently at 50.5, down from 64 in just one day. From November 21 to 24, the RSI maintained above 70, coinciding with the time when XLM's price reached its highest level since May 2021.
This period shows strong upward momentum before the price cools down.
XLM's RSI indicator | Source: TradingView
The Relative Strength Index (RSI) measures the speed and change of price movements, providing insight into the asset's overbought or oversold condition. An RSI value above 70 typically indicates overbought conditions and the potential for price correction, while a value below 30 suggests that the asset may be oversold and has a chance to recover in price.
Currently, with an RSI of 50.5, XLM reflects a neutral state, balancing between buying and selling pressure. This may indicate that the price is in an accumulation phase, waiting for clearer signals from the market to determine the next direction.
Stellar's Ichimoku Cloud suggests a change in market sentiment
Stellar's Ichimoku Cloud indicator shows that the price action is near the cloud, signaling the potential to test the support levels.
The Leading span area (green and red shadow area) reflects a neutral to slightly bullish trend. The cloud is relatively flat but still provides support around the $0.50 level. The Tenkan-sen line (green line) is below the Kijun-sen line (red line), indicating that short-term momentum is weakening.
XLM's Ichimoku Cloud indicator | Source: TradingView
If XLM maintains above the cloud, the overall trend may still be bullish, with potential recovery towards the Tenkan-sen and Kijun-sen lines.
Conversely, if the price breaks below the cloud, this could signal a bearish trend, with the potential for the price to retest lower support levels. A flat cloud indicates hesitation in the market, and traders may wait for a clear breakout or breakdown signal.
XLM price prediction: Can it reach $0.7 in December?
Currently, XLM is facing two resistance levels near $0.53 and $0.56, while the EMA lines remain bullish with short-term moving averages above long-term moving averages.
However, Stellar's price has recently fallen below the shortest-term EMA line, indicating a potential loss of short-term momentum. This signals that the current upward trend shows signs of weakening, and if it does not recover quickly, the price may continue to decline.
XLM/USDT chart on the 4-hour timeframe | Source: TradingView
If the upward trend is reinforced again and XLM's price exceeds these resistance levels, the price may retest the $0.638 level, with potential to rise to $0.65 or even $0.7, returning to price levels seen in 2021.
Conversely, if the bearish trend occurs as forecasted by the Ichimoku Cloud and EMA lines, XLM's price could test the support threshold near $0.41, marking a significant correction from the current level.
