Stellar is a peer-to-peer decentralized network launched in 2015 to ensure protocol and connect global financial systems for financial institutes and payment providers.
Since its inception, the intermediate currency of this network (XLM) remained corrective for a year before showing an 864% gain during the 2021 crypto bull. However, a strong bearish correction came after the post-Covid situation, where the loss was extended for investors.
Recently, several developments have been seen for this instrument as the company announced their partnership with Fonbnk to turn 8 billion active prepaid SIM cards. The main aim of this partnership is to provide a debit card payment system to those active users.
The Stellar payment protocol offers cross-border transactions, bypassing higher fees and slow procedures. Moreover, Stellars works as a decentralized exchange, where investors can buy/sell or exchange their assets in settlements.
There are 25.2 billion XLM in circulation from the total supply of 50 billion. The total market cap of this token is $4,358,373,715, and XLM Price Prediction today faces a decrease in trading volume by 51% to $310,154,268, led by massive seller activity.
Let’s see the future Stellar Forecast from the Stellar (XLM) Price Prediction:
Stellar (XLM) Buying Pressure Needs A Correction
Stellar (XLM) faced massive selling pressure from the 0.1389 swing high, making a 25% loss to bulls.
Moreover, Stellar positively correlates with Bitcoin by 84%, where BTC's recent ascending channel breakout might work as a bearish factor for XLM.
This technical analysis shows the daily chart of XLM/USD, where the recent price has become excessively volatile after the massive bullish pressure. Based on the fixed range trading volume indication, the highest volume, from 0.1977 high to 0.0759 low, was seen at 0.1592, from where consolidation and breakdown appeared. It is a sign that the strong buying pressure has become questionable, which may indicate a possible bearish correction.
The 20-day Simple Moving Average slows down below the 0.1240 static resistance level, acting as an immediate barrier to bulls. As the 20 and 50 Simple Moving Average levels are way below the current price, indicating a possible downside correction as a mean reversion. The RSI remains above the 70.00 overbought level in the indicator window, with a higher possibility of reaching the neutral 50.00 level.
Based on the daily Steller price prediction, a downside correction is more likely to happen where the primary target is the 0.1389 level. A bullish rebound from the 0.1300 to 0.1118 area could resume the bullish trend, targeting the 0.1900 level.
XLM/USD Ichimoku Cloud Analysis
Based on the Ichimoku cloud, XLM/USD showed strong buying pressure from the cloud support with multiple higher high formations. Therefore, the primary outlook of this instrument is bullish as long as the price trades above the critical support zone.
In the most recent price chart, the selling pressure was extended after forming a descending channel above the Kumo Cloud, while the future cloud remains supportive of bulls. Price spiked higher towards the 0.1811 level, making the 0.1384 to 0.1240 area a valid demand zone.
The Moving Average Convergence Divergence (MACD) shows sellers' presence in the market by moving the Histogram below the neutral zero level. Moreover, no sign of divergence exists where the current MACD EMA formed a bearish crossover at the overbought area. The dynamic Tenkan Sen and Kijun Sen are flat but below the current price, which suggests a corrective price action.
Based on the H4 XLM Price Prediction, a bullish rejection and bearish rejection from the 0.1384 to 0.1240 area would provide a decent long opportunity in this pair towards the 0.1811 level. However, the bullish possibility is valid until the price breaks above the 0.1240 level with a H4 candle close.
XLM/USD Intraday Price Action Analysis
The highest trading volume from the visible range is at 0.1326, which represents a strong buyers’ presence in the market. The price went sideways after the bullish breakout and moved within a channel. It suggests that bulls have not done with the price and can regain the momentum at any time.
In the main window, the price trades closer to the 20 SMA and weekly VWAP where the stable break below these levels makes a new swing low possible. However, the Traders Dynamic Index shows a corrective market condition where the TDI level is at 50% area. As per this indicator, a minor downside correction is pending, which is valid until the TDI level reaches the 60.00 zone.
Based on the XLM Price Prediction forecast, investors should find clues from the current bearish channel extension at the 0.0.1450 to 0.1325 level, where a strong bullish rejection with the channel breakout could indicate an impulsive bullish pressure.
Is Stellar (XLM) A Sell?
According to the XLM Forecast, the corrective selling pressure in XLM/USD will likely extend in the coming days. Therefore, investors should monitor how the price trades within the descending channel to find the early bullish opportunity from the intraday chart.