This news didn’t move Stellar, which was in the midst of a major battle between sellers and bears at the time of publication (Point of Control). Meanwhile, the current drops comprised a bearish setup on the asset’s daily chart.
An opening to the negative in future sessions could result from a closing below this pennant. In order to counter the current bearish trend, XLM bulls should increase their buying power. While authoring this material, XLM changed hands at $0.11233, reflecting a 2.57 percent loss within the past 24 hours.
Stellar Daily Timeframe
The bearish slide from $0.2 created a 3-month trend-line barrier on XLM’s daily chart. On June 18, the alternative token fell by over 58% from its April highs and touched a 19-month low. Since then, multiple rallies have been put on hold by trend-line resistance. As a result, the recent upward channel failure led to a bearish pennant. As a result, XLM fell below the 20-day exponential moving average, confirming the onset of a bear market.
Bears could fall beneath the pennant if they behave in a manner that is consistent with their behavior. A closing under this mark would expose the altcoin to falls toward $0.1019. In the meantime, a revival of purchasing pressure might result in the nearest trend line encountering resistance, which would undermine the efforts of buyers. As the short-term Exponential Moving Average moves south, sellers appear to solidify their position in the current dynamics..
Within the last two days, the Relative Strength indicator has taken a pessimistic outlook. The resistance at 42 has halted short-term purchasing efforts on the XLM chart. In addition, a negative divergence was printed between the movements of the Stellar price and the on-balance volume’s higher highs from the previous week. According to the prevailing sentiment, the alternative token was undervalued.
The crypto market has been dominated by bears this year, causing the global market valuation to fall below $1 trillion. In the time it took to write this post, this measure was $906,25 billion. The marketplace remains sluggish as bears consider downside developments.
One Last Thought
Stellar may experience a decline as a result of the existing bearish pennant formation approaching the southern 20 Exponential Moving Average. If the setup is broken, XLM might go on a 9 percent decline. For the purpose of making informed decisions, interested traders should monitor the general sentiment of the market in addition to the actions taking place on the chain. That remains crucial to reduce the risks of possible bearish invalidation.