- Our dear XLM bulls are valiantly attempting to flip the $0.3-level back to support, bless their hearts!
- RSI and OBV on the 4-hour chart are giving off faint whiffs of bullishness, like a poorly brewed cup of tea.
As Stellar [XLM] continues its rather gloomy descent, one might say it’s been as lively as a damp sponge. The trading volume has been as low as a cat’s meow in a library, suggesting that this bearishness is merely a reflection of the wider market’s uncertainty and Bitcoin‘s rather unfortunate losses.
Indeed, our token finds itself at a rather critical juncture on the lower timeframe price charts. The bulls are bravely challenging the $0.3 resistance level, but one must ask – will they succeed in creating a breakout, or will they be met with a resounding thud?
Stellar forms a short-term range and faces resistance up to $0.31
The 61.8% Fibonacci retracement level has decided to play a game of musical chairs, flipping from support to resistance. At the time of writing, the price has experienced a delightful 19% bounce in a day, testing the $0.299 region as resistance. However, it may well be that the bulls’ efforts will be met with a firm “not today, old chap!”
Throughout February, the 1-day market structure has been as bearish as a grumpy old man at a picnic. Until this changes, swing traders would do well to avoid betting on a bullish reversal. Instead, the recent price bounces could present a splendid opportunity to sell, much like a well-timed joke at a dinner party.
At this very moment, the RSI on the daily chart remains below 40, reflecting a sizeable bearish momentum, while the OBV is not on a downtrend. This curious situation hints at a lack of high selling volume, despite February’s losses. If Bitcoin can pull a rabbit out of its hat, we might just see a quick recovery!
The 4-hour chart reveals a range formation between $0.256 and $0.3, much like a game of hopscotch gone awry. Just above, the fair value gap from $0.303-$0.31 is likely to oppose the bulls’ progress. So, even though the RSI is above neutral 50 and the OBV has breached the local high, traders should prepare for a bearish move, like a cat preparing to pounce.
Should this idea be invalidated, we would need to see a retest of $0.3 as support, followed by a daring move beyond $0.31. Meanwhile, a rejection from $0.3-$0.31 could provide a splendid opportunity to go short on XLM, targeting the $0.273 and $0.256 levels, much like a well-aimed dart.
The past week’s liquidation heatmap has highlighted a rather strong magnetic zone just overhead. The $0.303-$0.31 zone is brimming with liquidation levels that could be tested before a bearish reversal. However, traders must remain as cautious as a cat on a hot tin roof.
The 1-month liquidation heatmap has revealed that the $0.35 and $0.37 levels are also sizeable liquidation zones, likely to attract Stellar’s price like moths to a flame. Therefore, if the $0.3 level is flipped to support, traders would need to flip their bearish bias and anticipate further gains, much like a sudden twist in a well-crafted plot!
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2025-03-01 19:21