Stellar price has continued to decline over the past 24 hours. On the last day, XLM lost more than 6% of its market value.
Stellar has recorded positive price sentiment recently, thanks to an update that spread optimism across the XLM community.
In the latest update, Stellar users can now transfer USDC and Stellar Lumens via email. Despite the update, technical indicators have sided with the bears on the one-day chart. The buying force has decreased significantly despite the number of buyers more than the number of sellers.
In the last week, the price of Stellar has increased by almost 7%. However, at the time of writing, the bulls appear to have weakened. The current support for XLM is between $0.111 and $0.106 respectively.
A drop to the $0.106 mark will cause the Stellar price to hit the $0.99 mark.
Broader market support will be needed for most altcoins to recover. If buyers do not receive momentum and XLM does not break through the SMA 20, then this altcoin will fall further.
Stellar price analysis in one-day chart
XLM is trading at $0.112 at the time of writing. The coin was unable to hold weekly gains and declines on the chart due to declining purchasing power.
It is important for the bulls to defend Stellar at $0.111, otherwise, the Stellar price could drop to $0.106. When the coin hits the $0.106 mark, it can also fall near the $0.99 level.
The upper resistance level of this coin is $0.116. A move above that level could push the coin price to $0.119. The amount of Stellar traded in the last trading session has decreased, indicating a decrease in purchasing power.
Technical Analysis
XLM is not yet in the oversold zone, but if the number of buyers continues to decline, sellers will soon take over.
Stellar has had a fairly favorable past week, but the bulls were unable to break through the $0.116 resistance mark causing the coin to depreciate.
The Relative Strength Index is right on the half-line and it is indicative of an even number of buyers and sellers.
Falling demand will immediately push the Stellar price below the 20-SMA line. This means that sellers are driving bullish momentum in the market.
There may be an opportunity for Stellar to drop in price as XLM continues to record buy signals on the one-day chart.
The MACD line measures the price momentum and overall price direction of altcoins. This line continues to form green signal bars that correlate with a buy signal for this coin. Although the green chart is falling as a sign of increased selling power, sellers have not yet taken over.
Parabolic SAR displays the price action of altcoins. The dotted lines below the price candlestick mean that XLM can rise again on the chart.
See also: Analyst thinks Bitcoin, Ethereum and Chainlink will have a short-term bull run
