Lately, the crypto market is displaying mixed signals, with some assets attempting to escape and others sinking deep in the red waves. With the Fear and Greed Index value holding at 44, neutral sentiment is lingering across the market. The largest assets like Bitcoin and Ethereum have chosen to trade on the downside.
Meanwhile, Stellar (XLM) has posted a 1.44% drop in the past 24 hours. In the early hours, the asset traded at a high of $0.3682. Gradually, with the bearish command in the XLM market, the asset has plunged to a low level of $0.3579. As per CMC data, at the time of writing, Stellar traded within the $0.3595 range.
With its market cap staying at $11.39 billion, the daily trading volume of Stellar has decreased by over 27.77%, reaching $201.21 million. Notably, an analyst chart shows an inverse head and shoulders pattern forming on Stellar. It is currently consolidating around $0.36–$0.39. If $0.52 is broken, the upside targets $0.64, $0.77, and possibly $1.
Stellar’s Moving Average Convergence Divergence line and the signal line are positioned below the zero line, implying that the overall momentum is bearish. Even if the short-term upward move occurs, the market bias still leans downward until the MACD rises above zero. In addition, the Chaikin Money Flow (CMF) indicator of XLM is found at 0.12 points to a mild bullish buying pressure in the market. Also, the money is flowing into the asset, which is not very strong.
The trading pattern of the asset reveals a downtrend, with the price might slip and find support at the $0.3588 range. If the bearish correction continues, Stellar could break down to its recent low below the $0.3581 mark. With a bullish shift in the XLM market, the price could climb and test the nearby $0.3602 resistance. Assuming the upside correction strengthens, the asset might trigger the price to move up above the $0.3610 mark.
Moreover, the daily Relative Strength Index (RSI) settled at 47.64, just below the neutral mark. It suggests the asset is in a slightly weak zone, but not oversold. The asset’s momentum would swing either way. The Bull Bear Power (BBP) reading of Stellar at -0.0025 indicates that the value is slightly negative, showing that the bears are in control. As the value is near zero, the asset has a neutral to mild bearish sentiment.
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