The Stellar XLM faces a growing drop pressure after a dull performance in last week.
Technical indicators flash warning panels, with a key Momentum indicator forming a lower crossover. This points out to weaken the purchase momentum and the potential for prolonged decrease.
XLM Bears takes control: technical and social parameters align for new losses
An evaluation of the graph of one XLM / USD day reveals that the indicator of divergence of Mobile average convergence (MacD) formed a lower crossing cross on July 24.
This happens when the macD line of an asset (blue) breaks under the signal line (orange). This happens when short -term momentum is weakening and decreases below the longer term trend. It often marks the start of a downward trend or a period of lateral consolidation.
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Since the crossing emerged, XLM has mainly exchanged in a narrow range, faced with persistent resistance around $ 0.44 while finding support at $ 0.41. This price action reflects a clear loss of the bullish impetus and confirms the current period of low negotiation and indecision activity among market players.
The absence of a strong directional movement reinforces the lowering perspectives of Altcoin, especially if support at $ 0.40 begins to weaken.
In addition, the chain feeling around XLM has also become negative, amplifying the probability of a continuous price slide. According to Santiment, the weighted feeling of the token is at -0,179, adding to the lowering pressures on its price.
The weighted feeling of an asset measures its positive or negative overall bias, given both the volume of social networks and the feeling expressed in these mentions.
When it is negative, it is a lower signal, because investors are more and more skeptical about the short -term perspectives of the token. This encourages them to exchange less, exacerbating the drop in prices.
A push could send it to $ 0.39 or trigger a rebound
XLM is negotiated at $ 0.43 at the time of the press, down 2% in the middle of the larger decline in the market. If the negative feeling is strengthened and the new request remains absent, Altcoin could get out of its narrow beach and fall to $ 0.39.
Conversely, a resurgence of bullish feeling could prevent it from happening. If the purchase activity resumes, XLM could reverse its current course, break the resistance to $ 0.44 and reach $ 0.45.
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