Connect with us
Active Currencies 14909
Market Cap $2,576,781,208,618.70
Bitcoin Share 51.61%
24h Market Cap Change $1.06

Will the range-low ease Stellar’s retracement

2min Read

Stellar was headed to a range-low which nears a crucial demand zone on the weekly chart. Is a rebound likely?

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • XLM has been stuck in a price range since mid-August. 
  • XLM’s demand declined further in the derivatives segment. 

Stellar [XLM] has presented consistent gains to swing traders in the last few weeks. In the first week of September, the rebound from the range-low ($0.11) to the range-high ($0.13) offered over 18% gains to bulls. 


Is your portfolio green? Check out the XLM Profit Calculator


The retracement from the range-high, seen at press time, could hit the range-low, effectively offering sellers 15% gains. But can it provide extra gains ahead of the Fed’s decision on 20 September? 

Is another rebound likely at the range-low?

Stellar [XLM]

Source: XLM/USDT on TradingView

Since mid-August, XLM bulls have defended the range-low of $0.11, which is close to the weekly bullish order block (OB) of $0.095 – $0.109 (cyan). The past two retests of the range-low hit the range-high. 

If the trend repeats alongside a favorable Fed announcement on 20 September, XLM could rebound at the range-low ($0.11) and target the mid or range-high. 

A surge above the confluence of the range-high and H12 bearish OB of near $0.13 could tip bulls to extend gains to $0.14. 

However, any extra pullback beyond the range-low could ease the weekly bullish OB. 

Meanwhile, the RSI retreated into the low range and wavered, indicating buying pressure dropped and stagnated. However, the CMF was above its threshold but had sideways movement, indicating capital inflows were positive but stagnant. 

Demand for Stellar dropped

Stellar[XLM]

Source: Coinalyze

The futures market data captured a more bearish inclination. For example, the Open Interest rates dropped by approximately $10 million between 9 and 17 September. It denotes an extended decline in demand for XLM in the derivative segment. 


How much are 1,10,100 XLMs worth today?


The excessively negative funding rates over the same period further tipped the scale in favor of sellers. 

In addition, the Accumulative Swing Index (ASI), which tracks the strength of price swings, had a downslope and flipped negative at press time, reinforcing a strong downtrend. 

So, a retest of the range-low was likely, and bulls could see reprieve at the level. 

Share

Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.