Stellar (XLM) – Exposed to additional declinesPosted on Tuesday, April 5 2022 at 8:57 pm GMT+0000
Stellar (XLM) opened the new week on the negative side, having failed to stretch the March rally past the last intraday top of 0.241, and snapped the regression channel, raising sincere questions about the persistence of the current short-term uptrend.
In other worrying signs, the 21-period exponential moving average seems ready to cross below the 55-period moving average, and momentum indicators are flagging bearish signals. The ROC dropped below its equilibrium level and the Awesome oscillator is gliding below the zero mark.
A sustainable drop below the most recent intraday low of 0.221 will officially confirm a bearish trend reversal pattern, bolstering sellers’ confidence to push initially towards the region between the 161.8% Fibonacci extension level of the last up-leg at 0.211 and the March 26th inside swing low of 0.209. By clearing these boundaries, they will aim for the 261.8% Fibonacci level at 0.194.
However, for buyers to return to the game, the price will need to navigate beyond the 0.238 – 0.241 area molded by the most recent highs. Such a move will bring the broad uptrend back into play and shift focus straight towards the middle line of the channel around 0.252.
All in all, Stellar has stepped below the regression channel, exposing itself to additional declines. Yet only a decisive drop below 0.221 will motivate a notable sell-off.