Stellar breaks down from descending triangle and picked up the pace on the daily charts after registering slight upward movement. The coin however is moving sideways and if the bulls reclaim the chart XLM can break above this channel so let’s find out more in today’s Stellar news.
The technical outlook for the coin is bearish and the buying strength remained low. The recent selloff on the market caused the coin to lose a $0.107 support line so if the coin doesn’t rise above the resistance mark, the altcoin could continue losing its value. The buying strength has to cover the market for the coin to break over this trendline but for the bearish thesis to be invalidated, it is important for Stellar to move above $0.113. for stellar to maintain the recovery, the buying strength has to re-enter the market, and the global market cap today is set at $968 billion with a 2.0% change in the past day.
XLM was trading for $0.106 and the coin tried to rise above this descending line but then fell in buying strength dragging the price below the support zone. If the coin manages to trade above this mark, it could soon revisit $0.113. trading above the $0.133 level will help the bearish thesis to be invalidated but if XLM loses the current price level, it can fall to $0.099 and the amount of stellar traded also dropped on the chart which signifies less buying strength. If the buying strength continues to remain low, the coin can be dropped to the $0.099 level.
The altcoin flashed a fall in a buying strength and as can be seen from the technical indicators, the RSI was closing to the halfway line after noting a downtick and this meant buyers are exiting the market. If the buying pressure continues the momentum the RSI can fall below the zero line. The price of Stellar was above the 20-SMA which pointed to the buyers driving the price momentum on the market and although the buyers are more in number comapred to the sellers, it Is still not enough for the ocean to register a new price rise. Stellar breaks down from the descending triangle and the buying strength is still low so the Chaikin Money Flow shows the capital outflow and inflows paint a downtick.
The Awesome Oscillator pointed to the price direction and momentum and the AO turned positive showing green histograms. These histograms show a change in price direction and a buying signal. Besides that, if the buyers don’t act on it, Stellar’s movement will be stalled.
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