Stellar Lumens breaches $0.11 – Will sellers push it lower?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Sellers broke the bullish defense of the $0.11 support to extend bearish market structure.
  • Sharp drop in spot CVD revealed key absence of demand for XLM. 

The selling pressure on Stellar Lumens [XLM] finally overwhelmed the bullish defense of the $0.11 support level. Buyers held onto the support level from late September till early October.

How much are 1,10,100 XLMs worth today?

However, the bearish sentiment in the market over the past three days which saw Bitcoin [BTC] lose the $27k support spilled over into XLM. Thus, the bearish break in the support level could lead to an extension of XLM’s bearish market structure.

Limited capital inflows saw bulls give up critical support level

Stellar Lumens XLM price chart

Source: XLM/USDT on Trading View

The Chaikin Money Flow (CMF) indicator revealed the muted capital inflows into XLM. The indicator has been in negative territory since 21 September and was still in negative territory, as of press time.

This led to a sluggish defense of the $0.11 support level by bulls with sellers taking advantage to extend the bearish slide.

Buyers were further weakened with the Relative Strength Index (RSI) slipping into the oversold zone, denoting an absence of buying pressure.

With price trading at $0.1, as of the time of writing, the short-term target for sellers will be the $0.09 price zone. However, sellers must scale another support level at $0.096 to reach this price level.

On the other hand, bulls could look to the $0.096 support to mount a solid price rebound. This price level produced XLM’s biggest gain this year and is also nested in a weekly bullish order block between $0.094 – $0.109.

Read Stellar Lumens’ [XLM] Price Prediction 2023-24

Bearish speculators made sentiment clear

Source: Coinalyze

The activities of speculators in the futures market showed XLM’s bearish trend could persist in the short to mid-term. The Open Interest continued to dip alongside price, highlighting the possibility of further price drops in the coming days.

Similarly, the spot CVD declined sharply to reveal the massive lack of demand for XLM. This could see sellers further overwhelm the market in the lower timeframes, as buyers continue to struggle to reverse losses.

Source link

Read Previous

Westerners See El Salvador as a Template for a New Monetary System

Read Next

Scroll zkEVM Launches, Blockchain Data Shows, Competing With Polygon, Matter Labs