Stellar (XLM) – bears resurfaced looking to extend the negative course

Stellar (XLM) – bears resurfaced looking to extend the negative course

After a brief pause, Stellar’s (XLM) bears resurfaced and are looking to extend the previous two-month negative course, during which the payment network plunged to a fresh 18-month low.

The diving 20-and 50-day exponential moving averages are still backing the broad downtrend despite the recent halt in the selloff, while the oscillators are suggesting that negative momentum is starting to intensify again. Specifically, the RSI has turned lower in the negative territory, and the Stochastics have performed a fresh bearish cross, with the %K line just nudging beneath the 50-neutral mark.

As of that, a decisive daily close below 0.120 will bolster negative pressures triggering an immediate test of the May 12^th bottom at 0.102. Any significant penetration here will ignite a steeper decline towards the October 2020 inside swing high at 0.088.

Otherwise, if buyers start to push back, initial resistance could emanate from the 20-day exponential moving average before the price encounters upside constraints from the May 15^th top at 0.145 and the adjacent 2/1 Gann fan angle stretched from the March 28^th peak. If positive pressures endure, a tougher battle could take place around the February 24^th inside swing low at 0.162 and the 50-day exponential moving average. Beyond the latter, all eyes will turn to the 3/1 Gann fan angle ahead of the April 5^th high of 0.188.

All in all, Stellar continues to exhibit a strong negative tone, and a daily close below 0.120 will reinforce the bearush momentum likely opening the doors for fresh lows. Yet, a jump above 0.145 could raise optimism for additional positive developments.