Stellar (XLM) Reflects Weakness While Trading Sideways

Stellar (XLM) price is moving in sideways channel in between the top and bottom horizontal lines. The coin is following the downtrend line extending from November 10, 2021, and is currently moving at the price level that could push it in any direction. The coin has declined massively in the past two months and currently the XLM coin may head toward its support level of $0.20. 

There is a formation of triangle pattern and the price is outside the premises of the triangle with a constant formation of bearish candles and the price moving towards bottom horizontal line. In the 4-hour chart, there was a bullish divergence between the price and the RSI indicator and though the price began to rise but still couldn’t cross the swing high of $0.29 and descended to the same position where divergence was formed.

On the daily chart, the MACD line being below the signal line and the histogram chart showing red candles, indicates a bearish zone. The RSI is 38 and it may head towards oversold zone. The coin may turn around after reaching its support point and in the upcoming days may head towards its resistance. The volume bar has also been favorable towards the bears. According to short-term XLM price prediction, the bullish candle was formed and closed above the downtrend line but the price couldn’t rise and climb above the swing high of $0.31

On the weekly chart, the price of Stellar Lumens is beneath the up-trend line extending over from November 20. The XLM price has been above the trend line till November 21 after which it closed below the trend line. Though the Stellar crypto is in downward pattern but it still hasn’t crossed the swing low of $0.20. The coin may continue to fall to a minimum target of $0.19 after which it might turn around.

The technical parameters are already in the bearish zone. XLM is below the downtrend line and not even once since May 10, 2021, the coin got tested at the downtrend line in the long-time frame chart. In an intraday session in the previous week, there was an overall price move of 13%.