Bitcoin
Bitcoin$48 577.58

-10.42%

Ethereum
Ethereum$2 203.70

-10.98%

Binance Coin
Binance Coin$484.39

-13.06%

Tether
Tether$0.999800

-0.03%

XRP
XRP$1.05

-20.52%

Cardano
Cardano$1.03

-15.56%

Price predictions

Stellar (XLM): Rolling Back to the March Price Levels


14 Oct 2020   #Stellar

Stellar (XLM) was arguably one of the most bullish altcoins outside the DeFi space that made respectable gains ever since the market dived headfirst to its lowest levels when the first wave of the coronavirus pandemic had hit the world. After dropping to $0.026, XML rallied 355% over the course of 161 days without any considerable retracements, with only a brief period of consolidation between $0.063 and $0.079 that lasted for 70 days.

1-week XLM/USDT chart  

Everything had been shaping up for Stellar to engage in a secondary uptrend after years of bear market, but the September selloff has thrown the bucket of cold water on the blazing hot rally. XLM has been nothing but bearish since August 17, having lost 44.1% in two episodes of price dump. Its performance profile remains 21.3% in the green against USD on the yearly scale, but other than that, it’s all red for Stellar, a clear signal to get out of this market, if you haven’t done so already.

Back from where it all started?


Going back to the weekly chart, the sellers aren’t willing to cut any slack to the opponents as they continue to pressurize the price to the downside. There is little doubt that Stellar will return to the support line at $0.63 over the course of the next seven days.

Our XLM prediction is that on this time frame, the price will eventually drop to $0.052, another 26% decrease, though it might find support for a short period at $0.063. By that time, the signal line of MACD should reach the zero line, at which point traders should be looking for reversal signals that must be confirmed by the indicators and the rising bullish volume. Should MACD persist descending into bearish territory, the rollback to the March price levels ($0.036 - $0.044) would be practically inevitable.

1-day XLM/USDT chart

On the daily time frame, the price is about to reach the point of resolution of the inverted cup and handle pattern that has the bearish bias and supports our prediction of further price depreciation. To add salt to injury, Stellar has fallen below both trend-determining exponential moving averages (50 EMA and 200 EMA), which is a sure sign that the bears are prevailing in this market. Also, the current price action takes place within the context of the bearish checkmate pattern that almost always resolves to the downside.

All in all, Stellar went from having one of the most attractive bullish setups to being pulled back into the bearish zone, with the possibility of making a complete U-turn to the March price levels being very realistic.

Author: Alex Paulson for Crypto-Rating.com

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.