The Stellar market has fallen despite slight jumps in the Bitcoin price. The altcoin market had seen the trend towards a bearish market with its ongoing correction. At the time of writing, XLM was trading at $ 0.3262 as it fluctuated between its immediate support and resistance.
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Source: XLMUSD on TradingView
The stellar chart above showed that price slipped and broke through various levels of support. At the time of writing, the price of XLM was capped between $ 0.3294 and $ 0.3191. The asset fell into a descending channel and had risen higher after hitting the support line. However, it failed to overcome the resistance and continue to move sideways.
This sideways movement of the coin can lead to more selling pressure.
argumentation
The price was already moving sideways, but had lost a large volume of traders. Although the digital asset has traded above its immediate support, as it entered an extreme bear market, its value could decline. The Relative Strength Index had fallen dangerously near the overbought zone, but only a change in price trend could change the direction of the market.
The MACD indicator also shows the bearish sentiment in the market. When the MACD line crossed the signal line and meanwhile the moving average of 50 indicated that the price had fallen further as it stayed high above the candlesticks.
Conclusion
The fate of XLM could change if the price of the digital asset moves out of the bearish bearish channel. If the trend continues, the digital asset could be pushed by the support to $ 0.3191 and there could be a short period of time the price could be retraced to stabilize the market within the current range.
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