Will The Stellar Descent Continue Or Is A Reversal Imminent?

• 1 Recent data shows a recovery in social dominance and may impact price positively, and the Developer activity in Stellar has declined recently.
• 2 The current market capitalization of Stellar is $3.84 Billion, down from $4.5 Billion, with a trading volume of 128.37 million.

In the Stellar price market, there seems to be a fierce battle between the bears and bulls. As a result, the price has been consolidating for an extended period of time, indicating uncertainty and indecisiveness among investors. 

However, during the period from February to mid-March, the bulls were able to gain a slight advantage and pushed the price upwards from $0.10700 to $0.16000. Unfortunately, this upward momentum was short-lived as the price started to deteriorate again at the supply price level. 

This is evident from the price chart that shows a lower low structure, indicating that the bears are back in control and pushing the price down once again in the short term and sideways in the longer-trend analysis.

Therefore, if the Stellar price manages to break out aggressively in any direction by breaking the sideways range in a longer trend, will assist the price in choosing the direction.

Two possible scenarios could be observed on the price chart: first, if the price fails to hold above $0.10700, the price may decrease further. Second, if the price manages to surpass the level of $0.16000, then it will create opportunities for higher price levels.

Stellar Volume Analysis In Conjunction With Its Market Capitalization

On the daily chart, an asset’s price action in Stellar is majorly influenced by some most common metrics. The buying and selling of the Stellar price (XLM) are reflected by the crypto volume and market cap, which show fluctuations. The volatility in the Stellar asset price can be illustrated by the rise and fall in these values.

A closer look at the chart shows that both volume and token price were high around March 11th, 2024. That meant an increase in interest and activity in the market for the Stellar token. Volume was earlier above $500 Million while the price reached a high of around $0.160.

However, from March 11th, 2024 onwards, volume and price continued to fall, and a significant descent in its activity was observed which illustrated decreased demand and excitement about Stellar price. The trading volume depleted from $500 Million to the low of $50 Million by March 7th and the price fell drastically on the chart.

Moreover, at press time, the current volume is 128.37 million, and the market capitalization is $3.84 Billion, which declined from $4.5 Billion MCAP. Higher market capitalization often flourishes better liquidity as it assists in better investing and buying or selling Stellar assets more quickly and easily.

Similarly, evaluating market cap changes over the Santiment chart illustrates insights into potential Stellar price movements and overall market health over time. The market cap has been displaying lower spikes since mid-March this year. The corresponding fluctuations were reflected in the daily price chart, suggesting that buyers’ and sellers’ interest in the Stellar price has decreased.

Likewise, it is essential to consider the Stellar asset’s trading volume in conjunction with the market cap. A high market cap with a considerably low or decline in trading volume indicates declining liquidity, which makes it difficult to buy or sell Stellar crypto and that could affect the price.

Stellar Social Dominance Activity Evaluation

The social dominance and social volume chart display changes in awareness and the popularity of Stellar crypto among users. Social media platforms like X, Instagram, and Facebook act as a medium for crypto to spread its reach and popularity among users. 

The above data displays that the XLM crypto asset gained traction among users from the start of the year 2024 and witnessed a rise in popularity among social media users by mid-March. However, Stellar crypto seemed to lose its social dominance after March 11th, which also impacted the price negatively and the price dropped.

However, recent data shows that both metrics have started to show recovery in the Stellar crypto social dominance and social volume respectively, which may have a positive impact on the price and if it does not increase more convincingly, it could fall further in the coming sessions. 

Stellar Development Activity Analysis Over Chart

Furthermore, the development activity highlights the level of activity in the form of undergoing projects and developments in the XLM crypto and shows the recent updates and changes occurring in the Stellar crypto. The developer’s activity shows that it is on the decline and the developer’s activity and commit count have exhibited a decline in the last week over XLM crypto.

Summary

In the Stellar market, bulls and bears are battling, causing price consolidation. Bulls briefly pushed it from $0.10700 to $0.16000, but bears regained control, leading to a downward trend. Price must break out of the range to determine the next direction. High volume and market cap influence Stellar’s price, with a decline in interest and activity noted lately.

The current market capitalization of Stellar is $3.84 Billion, down from $4.5 Billion, with a trading volume of 128.37 million. Market cap changes can indicate potential price movements. A high market cap with low trading volume affects liquidity. Social media plays a role in Stellar’s popularity, which has seen ups and downs. Recent data shows a recovery in social dominance and may impact price positively, and the Developer activity in Stellar has declined recently.

Technical Levels

Support Levels: $0.10700

Resistance Levels: $0.16000

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.