- After a 300% price rise last month, XLM’s value dropped last week.
- Buying pressure increased, but there were chances of a bearish crossover.
As a seasoned researcher with years of experience observing and analyzing the cryptocurrency market, I must admit that Stellar [XLM] has been quite the rollercoaster ride lately. After witnessing an impressive 300% surge last month, it’s disheartening to see XLM’s value drop by 3% in the past week.
Following a month of significant price increases, control over Stellar [XLM] was regained by those who believe in a decrease (bears). Yet, even with this shift, several bullish trends emerged on the token’s price graph. If these patterns lead to a successful breakout, Stellar could potentially aim for $0.90 in value next.
Stellar’s new bull patterns
Over the past month, XLM demonstrated exceptional gains, outshining many leading cryptocurrencies. To clarify, the value of the token skyrocketed by over 300%.
Over the past week, there’s been a shift in the trend, with the price of XLM dipping by about 3%. Currently, it’s being traded at approximately $0.4879.
Recently, the drop in price for Stellar appeared to negatively influence its social statistics. For example, the Social Dominance of XLM decreased, suggesting a potential reduction in the coin’s appeal among users.
The Weighted Sentiment dropped significantly, indicating an increase in pessimistic opinions (bearish sentiment). Meanwhile, Stellar’s trading volume and price both saw steep decreases. However, this situation could potentially lead to a shift from bullish trends.
As a dedicated researcher delving into the intricacies of cryptocurrencies, I’ve recently taken note of an insightful observation by Javon Marks, a well-respected crypto analyst. In his latest tweet, he highlighted two bullish indicators spotted on Stellar’s chart. The first, a bullish symmetrical triangle pattern, emerged in November.
At the moment, XLM’s price was holding steady within a specific pattern, tending towards touching the upper boundary or resistance of that pattern.
On the token’s Relative Strength Index (RSI) chart, a second descending trendline, or wedge formation, took shape. Fortunately, the RSI subsequently surpassed the upper boundary of this bullish pattern.
Should XLM’s price pattern resemble past trends and achieve a breakthrough, it could potentially rise toward approximately $0.90 within the near future.
Will XLM breakout soon?
According to Hyblock Capital’s findings, although the price of XLM experienced a downturn due to a correction, there was an uptick in investor purchases during this dip. Interestingly, the token’s purchase activity spiked on more than one occasion over the last few days.
When the metric increases, it suggests an uptick in trading activity for a specific cryptocurrency, with investors predominantly buying.
It seems that the situation wasn’t entirely in my favor during this analysis. For example, I noticed a significant drop in the long/short ratio.
It signified a higher number of bearish bets being placed on the market, typically suggesting lower investor confidence regarding a particular asset.
Read Stellar’s [XLM] Price Prediction 2024–2025
The MA Cross signs might suggest an upcoming downtrend, since the gap between the 21-day Moving Average and the 9-day Moving Average is shrinking.
If XLM keeps falling, there’s a possibility it could find stability around $0.43. However, if we see a shift towards a bullish market, it’s important for Stellar to break through the $0.56 barrier to maintain any potential upward momentum.
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2024-12-08 18:15