Stellar (XLM) – Expected to surrender extra groundPosted on Tuesday, April 26 2022 at 8:46 pm GMT+0000
Stellar (XLM) built the foundation for a new bearish wave after the recent dive below the 0.186 support level which managed to mute negative pressures earlier this month.
The falling Tenkan-sen line acted as a tough resistance line in Tuesday’s session and pressed the price harshly lower. Moreover, it is still diving well below the Kijun-sen for the second consecutive week, endorsing prevailing bearish forces. Regarding the oscillators, the RSI is declining in the bearish region, and the KST, south of the zero threshold, is gliding underneath its signal line, promoting additional bearish developments.
Sellers are increasingly becoming more confident that the descent will continue in the coming sessions, particularly following the recent drop below the 0.186 support. Those are now expected to target the 161.8% Fibonacci extension level of the last minor up-leg at 0.169 adjacent to the March 3rd bottom. If this floor collapses, negative pressures will amplify further leading the price below the February 24th low and likely towards the 227.2% Fibonacci extension level at 0.152.
However, following any sudden improvement in sentiment, buyers could get congested once again around the curbing Tenkan-sen line at 0.193. If the latter gives way, the rally could pick up steam towards the 0.209 – 0.212 resistance area, linked to the Kijun-sen line and the April 15th top respectively. In the event that profound buying pressures endure above the nearby cloud, the bulls could then seek out the March 28th top of 0.241.
In brief, Stellar dipped below a key support barrier and is expected to surrender extra ground. Only a move beyond 0.212 could inject some optimism back in the market.