Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Since November 2021, Stellar Lumens has registered a sequence of decrease highs on the worth charts. There had been particular person rallies upward for the crypto asset, such as a 28% rally in early February and one other 30% transfer upward in March. Yet, the general course has been to the south, and this development appeared prone to proceed within the days to return.
XLM- 1 Day Chart
In mid-March, together with most different altcoins, XLM additionally noticed a speedy surge upwards. It rose from $0.18 to $0.24, a close to 30% transfer in simply over two weeks. In April and May, the sentiment shifted bearish as soon as extra, as it had been since January.
Stellar Lumens fell beneath the $0.18 assist and retested the identical stage as resistance earlier than plunging but once more. In May, it reached the $0.1 lows and revisited these lows in June as effectively.
The market construction was firmly bearish in current weeks. To the north, the $0.125 and $0.154 resistance ranges loom giant. The $0.154 is an area excessive and would should be damaged for the longer-term construction to flip to the bullish aspect.
The $0.12-$0.13 resistance zone gave the impression to be firmly within the palms of the sellers. A transfer to this space would extra doubtless see the continuation of the downtrend than a development reversal.
The momentum indicators on the day by day timeframe additionally painted a bearish image. The RSI has been beneath impartial 50 since April, an indication of the downward momentum behind XLM. The MACD was additionally beneath the zero line. Hence, at press time, the momentum remained pointed southward, though a small push upward to $0.12-$0.13 might happen.
To exacerbate consumers’ woes, the OBV has been in decline since April as effectively. This indicated promoting quantity was better than the shopping for quantity and acted to substantiate the downtrend. The OBV didn’t sign a development reversal both. The Parabolic SAR (dotted white on worth charts) additionally gave a promote sign on the time of writing.
Until the $0.12-$0.13 resistance zone was flipped to a requirement zone, the longer-term bias for Stellar Lumens would stay bearish. A transfer to this supply zone would doubtless provide promoting alternatives.