One can expect XLM to touch $0.7 in a few days. While it has been doing well owing to the deepening of the market, there are various reasons. As per the 12-hour chart, each instance when XLM price touched the 26-EMA or was close to it, it showed a strong rebound in the next 24 hours. Once again, XLM touched the 26-EMA but managed to rebound strongly.
Past Performance in XLM
The past week has not been very encouraging for XLM. The XLM price was rising till February 13, 2021. Thereafter, the price started falling. As of February 16, 2021, XLM closed at $0.48. In the last 3 days, the price has dipped by approx. 13%.
In the last 24 hours, XLM is trading between $0.46-$0.51.
What to Watch Out for in XLM
Currently, XLM is trading at $0.46. The price continues to fall. If you look at the Bollinger Band, the price is closer to the lower band. This implies that the crypto is being offloaded on a large scale. Moreover, the price is also below the 20-day SMA. Thus, the price trend is bearish.
The A/D and OBV indicators have fallen steeply. Thus, whale distribution is very high. Selling pressures have completely overtaken the market. Thus, we can expect the price downtrend to continue.
The AO indicator is negative. The ‘sell’ signals are very strong. The MACD and signal lines are negative too. Thus, the overall market momentum is bearish. The MACD line has just crossed above the signal line. This implies a trend reversal. The price may rise as a part of the price correction process.
The RSI indicator is at 47%. The RSI has just rallied from the oversold region. While selling pressures continue to be high, we can expect some price adjustments. There may be an intermittent price rise before it starts declining again.
The Stochastic oscillator paints a similar picture. Moreover, the actual value line has crossed above the 3-day SMA line. Thus, we can expect the price to gradually rise. Buying pressures are also slowly increasing. However, it is too early to confirm a trend reversal.
The ADX indicator is very volatile with many peaks and troughs. So, there is a constant tension between the bulls and bears. However, currently, overall the price is downtick.
The price may test the 23.6% and 38.2% FIB retracement levels of $0.47 and $0.48 respectively, before resuming its downtrend.
The current price is closer to the first Fibonacci pivot support level of $0.46. By the end of the day, if the price falls below the subsequent Fibonacci pivot support levels of $0.45 and $0.43 respectively, then the bear-run will continue tomorrow as well.