XLM bulls under pressure as price slips below key EMAs.
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Key Takeaways
XLM’s bullish momentum is fading, with strong resistance at $0.43.
Despite trading inside a bullish pennant, the MFI shows bearish divergence.
A bullish breakout remains possible only if the 20 EMA rises above the 50 EMA.
Stellar’s (XLM) 76% July rally had bulls hoping for a sustained breakout. However, the Stellar coin price does not appear ready to extend the gains.
Over the past seven days, XLM has lost 10% of its value and trades at $0.42. The altcoin faces a potential drawdown that threatens to nullify the rally entirely.
Will XLM price defy the odds and rebound, or will it succumb to bearish wishes? Let’s find out.
Stellar Loses Its Spark
After spiking and sliding this month, the Stellar coin price is now compressing within a bullish pennant. This formation signals the continuation of an uptrend.
However, other indicators on the daily chart reveal that XLM might find it challenging to validate the trend. For instance, the Money Flow Index (MFI), which hit 95.87 mid-month, has dropped below the 50.00 neutral line.
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The drop in the MFI reading indicates that buying pressure has declined. Hence, sellers are now in control.
This setup also indicates a bearish divergence, meaning that XLM’s price might struggle to break out of the pennant. Should this remain, XLM could drop as low as $0.32, especially as it struggles to break the resistance at $0.43.
Apart from the MFI, the Awesome Oscillator (AO) is another indicator that suggests that Stellar’s price might fail to bounce off its recent lows.
The AO has flashed consecutive red histogram bars below, indicating bearish momentum. The correction might be confirmed if the AO drops below the zero signal line.
Since the Stellar coin price continues to trade below $1, it will likely stay range-bound in the short term.
However, traders should stay alert. If selling pressure intensifies and XLM revisits its April lows, the broader market narrative that it will reclaim $1 this cycle could start to unravel.
A break below those key support levels would weaken bullish conviction and may delay any major upside breakout.
XLM Price Prediction: Gains to Gaps
In the short term, Stellar’s 4-hour chart has flashed a death cross, with the 50-period Exponential Moving Average (EMA), in yellow crossing below the 20 EMA (blue).
This pattern suggests growing downside momentum and typically points to continued weakness unless quickly invalidated by a strong reversal. In addition, XLM’s price is stuck in a descending channel.
As such, it risks breaking below support at $0.40. If that happens, the Stellar coin price could drop to $0.33 at the 0.382 Fibonacci level.
In a highly bearish case, it could fall to $0.29. However, if the 20 EMA flips above the 50 EMA, this prediction might not happen.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
