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XLM faces tough times, clears July gains

2min Read

XLM could record extra losses if it takes cue from the Q3 2022 price action amidst elevated bearish pressure.

XLM faces tough times, clears July gains

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

  • A weekly candlestick close below $0.131 could expose XLM to more losses. 
  • Wavering funding rates and negative Open Interest could favor sellers. 

Stellar [XLM] could take a cue from its Q3 2022 price action if the bearish pressure persists. Its extended pullback threatened to crack a key support zone and clear the rest of July’s gains. 


Is your portfolio green? Check out the XLM Profit Calculator 


XLM has been consolidating July gains above $0.1250 since mid-July. However, the bearish pressure over the last few weeks has forced an extended retracement to the April (Q2) high of $0.115. If this previous Q2 price ceiling cracks, more losses could be likely. 

Bulls out to defend Q2 high as support

Stellar price analysis

Source: XLM/USDT on TradingView

The $0.113 – $0.130 (cyan) support zone, bordering the Q2 highs, has been holding sellers from seeking more ground. Although it flashed green after a recent retest on the daily chart, indicating bulls’ intent to safeguard it, the weakening Bitcoin [BTC] was pressing. 

A session close below $0.131 on the weekly chart could confirm sellers’ extra leverage. Such a move will put XLM within the Q3 2022 price consolidation range of $0.099 – $0.131. If so, a price rejection at the previous range-high ($0.131) could lower the altcoin to the range-low ($0.099). 

Conversely, a move and convincingly close above $0.131 could confirm bullish intent. But such a move could be a pipe dream given a weak BTC in $25k. 

Besides, the RSI was in the negative zone despite showing reversal signs. The On Balance Volume (OBV) also declined slightly, reinforcing a dip in demand for the altcoin. 

Funding rates fluctuated

Source: Coinalyze

According to Coinalyze, there have been significant fluctuations in funding rates since mid-August, tipping the scale in favor of sellers. The cumulative green bars indicate positive funding rates and a bullish cue, while the red bars capture a bearish bias. 


How much are 1,10,100 XLMs worth today


If XLM takes a cue from Q3 2022 price action, shorting XLM at the previous range-high with take-profit at the range-low will be reasonable. 

However, more shorts,>$50k, were liquidated in the last 24 hours before the time of writing. It suggests a likely price pivot to the upside, but a weak BTC could complicate matters. 

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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.
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