Stellar prices continued to move south over the past 24 hours. On the last day, XLM’s market cap shrank by more than 6%.
Stellar has recently recorded positive price sentiment as the update spread optimism in the XLM community.
In the latest update, Stellar users can now transfer USDC and Stellar Lumens via email. Despite the update, technical indicators support bears on the one-day chart.
Even with the number of buyers compared to the number of sellers, purchasing power has dropped considerably.
Stellar prices rose nearly 7% last week. At press time, however, the bulls looked exhausted. The current support area for XLM is between $0.111 and $0.106.
A decline from the $0.106 mark would lead to Stellar price hitting the $0.99 mark.
The recovery of most altcoins requires broader market support. If buyers do not gain momentum and XLM does not break below the 20-SMA, the price of the altcoin will fall further.
Stellar Price Analysis: One Day Chart
At the time of writing, XLM is trading at $0.112. The coin was unable to maintain its weekly gains and fell on its charts due to declining purchasing power.
It is important for the bulls to hold Stellar at the $0.111 level, otherwise the Stellar price could drop to $0.106. Once the coin hits the $0.106 mark, it could also drop near $0.99.
The overhead resistance for the coin lies at $0.116. Above that level could push the coin to $0.119. Stellar trading volumes have declined over the past session, indicating a decline in purchasing power.
XLM is still not in oversold territory, but if buyers continue to drop, sellers will soon take over.
Stellar has had a good week over the past week, but the failure of the bulls to break the resistance at $0.116 caused the coin to depreciate in value.
The RSI is right on the half line, which indicates an even number of buyers and sellers.
The drop in demand will immediately push the price of Stellar Lumens below the 20-SMA line. This means that sellers are driving price momentum in the market.
Given that XLM continues to show a buy signal on the one-day chart, Stellar may have a chance to redeem its price.
Moving Average Convergence Divergence measures the price momentum and overall price direction of an altcoin.
The MACD continues to form a green signal bar associated with a coin buy signal. Although the green histogram on the chart is falling as a sign of increased selling pressure, sellers have yet to take over.
Parabolic SAR shows the price action of altcoins. The dotted line below the price candlesticks means that XLM is likely to rise again on its charts amid continued demand.