XLM Technical Analysis: Price in a Downtrend Below the Second Fibonacci Pivot Point of $0.32

Ankita  |  Sep 14, 2021

Stellar (XLM) is an open software that allows the money to be stored and transferred. It started with an intention to help financial inclusion however, now the priorities have been shifted to helping the financial firms connect to each other. Let us look at the technical analysis of XLM.

Past Performance 

On September 7, 2021, XLM opened at $0.42. On September 13, 2021, XLM closed at $0.31. Thus, in the past week, the XLM price has depreciated by approximately 26%. In the last 24 hours, XLM has traded between $0.31-$0.33.

TradingView Chart

XLM Technical Analysis

The MACD and signal lines are above the zero range, thus suggesting traders to buy. However, a bearish crossover by the MACD line over the Signal line has occurred. Thus, the overall market momentum looks bearish. Hence, the price may fall. Since the MACD lines are near zero range, we can not rule out the possibility of the trend reversal.

Currently, the RSI indicator is at 42.90%. It faced rejection from 50.64% and fell to this level. Thus, selling pressures are slowly mounting. We have to wait and watch if buying pressures become strong enough to bring about a bearish trend reversal for XLM.

On the daily chart, the OBV indicator is in a constant range. Thus, it seems that selling volumes are being locked in.

In short, when we look at all three oscillators, we can say that the price may continue to fall for the rest of the day. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch to see if an intermittent price rise is a corrective action or the beginning of a positive trend.

Day-Ahead and Tomorrow

Currently, the XLM price is below the second Fibonacci pivot point of $0.32. If the bears remain strong till day end, then the price is likely to fall below the first, and second, support levels of $0.31, and $0.25, respectively.

However, if the price increases, it will break the immediate resistance level of $0.37. Post which, it will highlight the next resistance level at $0.41. Traders can take a long position accordingly.

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