- The $0.115 level is crucial for the price of XLM Coin.
- If the support area is lost, sales could gain momentum towards $0.099.
- The performance of BTC price will be decisive for XLM Coin in the coming days.
The current price level of XLM Coin is critical, and if the support area is lost, there could be a significant downward trend. The performance of Bitcoin in the coming days will also have a significant impact on XLM Coin.
Understanding Stellar (XLM) Coin
Stellar, a popular altcoin, has been consolidating its monthly gains above $0.1250 since mid-July. However, the selling pressure in the past few weeks has caused a pullback towards $0.115. If this critical area is lost, sellers could potentially drive the price much lower.
For now, bulls are holding onto the first quarter peak of $0.115 in hopes of further upward movement. However, bears are not giving up either. A close below $0.131 on the weekly chart will pull XLM back into the price consolidation range of $0.099 – $0.131 for the third quarter of 2022. This means there is a possibility of adding another zero to the price.
Analysts’ Take on XLM Coin
What is the expectation on the bullish side? If we see a movement above $0.131 and this is supported by closures, the price could re-enter an upward trend. However, the continued flirtation of BTC price with $25,000 suggests that bulls’ expectations may be overly optimistic. The OBV shows a weakening demand for the popular altcoin, and the RSI is still in the negative zone.
According to Coinalyze, there have been significant fluctuations in funding rates since mid-August, and the needle has turned in favor of sellers. Cumulative green bars indicate positive funding rates and a bullish signal, while red bars capture the bearish trend. If XLM follows a path similar to its price movement in the third quarter of 2022, short sellers could easily profit.
At the time of writing, the Bitcoin price is finding buyers at $26,075. Many important developments to occur in the coming week will be decisive for cryptocurrencies.
Conclusion
Investors should closely monitor the price of XLM Coin, as the loss of the support area could trigger a significant downward trend. The performance of Bitcoin will also play a crucial role in the future of XLM Coin. While there is potential for an upward trend, investors should be cautious as the market shows signs of a bearish trend.
