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Momentum indicators are extremely bearish, supporting the hypothesis that new lows are likely to be in store. The Relative Strength Index (RSI) is below 50, while the Moving Average Convergence/Divergence (MACD) is negative.
The MACD also made a bearish cross, putting the final confirmation that the XLM price prediction is bearish.
Can Stellar Reach a Bottom?
The daily time frame chart offers more hope than the weekly ones due to its corrective pattern since the cycle high.
Since the cycle high in July, the XLM price has traded within a descending parallel channel and is approaching its support trendline.
If the price bounces at the channel’s support trendline, it will reach a temporary bottom at $0.245 and then jump.
However, the daily RSI and MACD have not yet generated bullish divergence. On the contrary, both indicators are moving downward, increasing the likelihood that the trend is bearish.
Due to these readings, a short-term bounce may occur, but the XLM price is unlikely to initiate a bullish trend reversal.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
