- 1 Stellar (XLM) token shed over 17% last month.
- 2 Its trading volume spiked over 34%, signifying selling pressure.
XLM is an open-source blockchain that connects the users for P2P transactions. It was trading in a severe downtrend and revealed a range breakdown last week.
From the start of 2024, the XLM price was in a closed range and remained sideways. A fakeout was spotted in March, but it again entered the zone and continued to hover between the band of $0.1000- $0.1400.
A breakdown of the long consolidation happened last week and follow-on selloff action was noted. Notably, it reached its yearly lows of $0.0850 and looked bearish on the chart.
The underperformance points toward the issue with the relative strength and its place in the market. As it fell below its key moving averages, it indicated that the asset was in a rather deep decline and wouldn’t sustain a long-term upward trajectory.
Stellar Looks Bearish: Price Action Outlook
XLM has corrected over 90% from its all-time-high mark of $0.9381 and is on a bearish path. @Zaven The Rapper tweeted a buying opportunity on the XLM chart.
XLM Price Chart By Santiment
At press time, the Stellar token was trading at $0.08906 with an intraday drop of 2.49%, reflecting bearish cues on the chart. It has a monthly return ratio of -15.30% and -18.300% yearly, reflecting a downtrend.
Price Volatility and Weighted Sentiment Overview
Amidst the consistent price decline, the weighted sentiment data looks negative and was below the midline region at around -0.69.
Price Volatility Chart: Source: Santiment
Price volatility was low and stayed flat at around 0.01, signifying a steady decline in the past few sessions.
The pair of XLM/BTC is at 0.00000154 BTC, and the market cap is $1.79 Billion. Analysts are bearish and suggest that XLM could continue to lose gains and resume the underperformance.
buy $XLM #XLM #Stellar
— Zaven The Rapper (@ZavenTheRapper) July 2, 2024
its time. pic.twitter.com/fSH9N3YsYm
Source:X
Recently, the token breached out of its four months consolidation phase and triggered a selloff, which led the bulls in trouble and a panic slide was observed on the chart.
Additionally, if bears led an aggressive move, the token could stretch the drop to $0.0500 over the next few weeks. On the contrary, if the market sentiment flips and buyers succeed in gaining momentum, $0.100 would act a level to overtake for a significant reversal.
Out of 26 technical indicators, only 1 indicator gave a buy signal, whereas 15 gave a sell alert, and 10 signalled a neutral view.
Its trading volume soared over 42.85% to $75.22 million, signifying a volume based selloff activity and short additions activity was observed.
In terms of market cap, the token ranked at 50 and has a total supply value of 50 billion.
The immediate support levels for XLM are $0.0850 and $0.830, whereas the key upside hurdle is around $0.-900 followed by $0.970
XLM token price fell below the key moving averages and floated in the bearish wave. Until the token retains the $0.100 mark, the sellers will dominate and might stretch the downside ahead.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
