Connect with us
Active Currencies 14763
Market Cap $2,239,479,800,663.40
Bitcoin Share 54.37%
24h Market Cap Change $1.59

XLM sees a drop in prices but bulls should see it as an opportunity

2min Read

The Open Interest chart outlined enormous bearish sentiment and overwhelming short sellers in recent hours- can the bulls reverse this trend at a month-long support level?

Stellar Lumens offers a good short-term buying opportunity after the recent dip

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.

  • Stellar Lumens has a strong bearish sentiment and momentum in the lower timeframes
  • A continued drop in Bitcoin prices would cause further panic in the crypto markets

Stellar Lumens [XLM] fell from $0.12 to $0.1115 in 48 hours. During the same time, Bitcoin [BTC] also fell by 4% in value. However, both XLM and BTC are retesting a zone of demand at press time.


Read Stellar Lumens’ [XLM] Price Prediction 2023-24


The market structure and momentum of Stellar Lumens have been bearish since late July, but the price chart showed the formation of a range over the past two months. The losses of the past few hours took XLM to the lows of this range. Can the bulls defend it once more?

The volume indicator shows massive capital outflow from the XLM market

Stellar Lumens offers a good short-term buying opportunity after the recent dip

Source: XLM/USDT on TradingView

The aforementioned range extended from $0.111 to $0.1334. Stellar Lumens traded within this range since 20 August. The four-hour chart showed the market structure was firmly bearish and the Relative Strength Index (RSI) reflected intense bearish momentum with a reading of 25.

The Chaikin Money Flow (CMF) also took a dive lower and its reading of -0.3 signified sizeable amounts of money leaving the market and underlined selling pressure. The high trading volume of recent hours was another sign that bearish sentiment was overwhelming.

Yet, the $0.111 level is month-long support for XLM. It represented a good buying opportunity with low risk and high reward, as a bounce from this level would likely reach the range highs at $0.133, representing gains close to 20%.

The surge in spot buying was a surprise

Stellar Lumens offers a good short-term buying opportunity after the recent dip

Source: Coinalyze

CMF, the volume indicator shown on the price chart noted high selling pressure in recent hours. Yet the data from Coinalyze contradicted this and showed a large amount of buying volume in the spot market. This was evidenced by the large spike in the spot CVD.


How much are 1, 10, or 100 XLM worth today?


However, the Open Interest (OI) revealed the market sentiment was strongly bearish as the OI climbed higher alongside falling prices. It denoted short sellers dominated the market and if the trend continues, XLM bulls might be unable to defend the $0.11 support.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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.