- The stellar price action is now supported by the triangle above.
- XLM could lose more than 7% after breaking the 200-day EMA support at $0.1127.
- Current numbers indicate a downward trend despite increases in social dominance and social reach.
Stellar Token (XLM) has experienced severe volatility over the past few months as price action has consolidated in a triangle shape. As the technical framework becomes more saturated, XLM may decline from a technical perspective, even as social statistics grow in popularity.
Read also: Bitcoin Cash surges 15% and closes millions of short positions amid Franklin Templeton ETF frenzy
Star's price takes into account potential losses.
Stellar Price (XLM) has no directional bias as it takes a fairly neutral technical approach. Typically, when price follows this chart, investors should wait for a critical breakout before opening positions. Technically, XLM may soon fall below the lower boundary of the triangle.
Stellar's price currently remains driven by the exponential moving averages (EMA) at $0.1257, the 50-day EMA and the 100-day EMA at $0.1203. The relative strength index is lower, suggesting that XLM could see a pullback towards the 100-day EMA at $0.1203 before breaking below the lower boundary of the triangle to resistance. A critical daily candle close below the 200-day EMA at $0.1127 confirms the short-term downtrend.
Specifically, when the RSI crosses the signal line bar (yellow), it indicates a sell call. If traders are careful, this increases the likelihood of a fall.
XLM/USDT 1-day chart
Conversely, Awesome Oscillator (AO) still promises. Over the past nine trading sessions, the histogram bars have consistently moved into positive territory and maintained a green tint. This suggests that more bulls are flocking to the scene, which could trigger a new wave of bullishness on Stellar prices.
To confirm, Stellar price must break above the upper limit of the chart pattern and register a critical daily candle above $0.1389. In extreme cases, the profit can be increased to a psychological $0.1600.
XLM's social performance is growing.
On-chain indicators, in addition to typical collector sentiment, tip the scales in favor of the bulls, indicating that XLM's social dominance and social metrics have recently reversed and are on the rise.
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XLM offer
Increasing social dominance means that a coin's share of crypto social networks, or the percentage mentioned, increases compared to a group of over 50 popular projects on social networks. Likewise, social volume measures the number of coins across more than 1,000 cryptocurrency-related social media channels.
When the two social indicators reflect these signs, the growth rate becomes bullish, which contributes to economic growth.
Also Read: Investors Bet on XLM Stellar as SEC Retaliates Against Ripple's XRP Token
Frequently Asked Questions for Cryptocurrency Candidates
The developer or creator of each cryptocurrency determines the total number of tokens that can be produced or issued. Only a limited amount of these assets can be created through mining, shares, or other methods. This is determined by the blockchain technology algorithm. Since its inception, a total of 19,445,656 BTC has been mined, which is the source of Bitcoin distribution. On the other hand, the circulating supply can be reduced by actions such as burning tokens or incorrectly sending assets to addresses on other incompatible chains.
Market capitalization is the result of multiplying the current supply of an asset by the current market value of the asset. Bitcoin's market capitalization as of early August 2023 is over $570 billion, which is the result of over 19 million BTC in circulation multiplied by Bitcoin's price of around $29,600.
Trading volume refers to the total number of tokens of a particular asset traded or exchanged between buyers and sellers during a given trading hour, such as 24 hours. This indicator, used to measure market sentiment, aggregates all volumes across centralized and decentralized exchanges. An increase in trading volume indicates demand for a particular asset as more people buy and sell cryptocurrency.
Funding rates are a concept designed to incentivize traders to hold positions and ensure that current contract prices are in line with spot markets. It establishes a system of exchange to ensure future prices and regular price payments. If the funding rate is positive, the price of the perpetual contract is higher than the strike price. This means that many traders and long traders will pay short traders. On the other hand, negative liquidity means that fixed prices are below the set level and short traders pay off long positions.