Stellar (XLM) Price Retreats, Technical Indicators Signal Neutral Market Dynamics

XLM price has retested the range support zone of $0.1200 and is awaiting a rebound. Bulls are attempting a pullback and are trying to attain momentum. The price has retraced to the 100-day EMA mark and has retested the neckline support region of $0.1200.

Stellar (XLM) Price Retraces: Technical Analysis Reveals Neutral Market Dynamics

The Stellar (XLM) cryptocurrency has witnessed a retracement in its price, retesting the crucial support zone of $0.1200. This move has prompted traders to anticipate a rebound, signaling a potential shift in market sentiment.

Retracement and Support Test

XLM's price has traced back to its 100-day exponential moving average (EMA) and the neckline support area at $0.1200. The coin exhibited a breakout from a trading range recently, reaching a high of $0.1600. However, the broader market downturn triggered a sell-off, resulting in a 20% decline for XLM over the past 30 trading sessions.

Bullish Sentiment

Currently, XLM is trading at $0.1276, reflecting a 1.95% intraday drop. The coin has experienced a negative monthly return of -12.56%, while its annual return stands at 20%. Despite the recent retracement, analysts maintain a neutral outlook, suggesting the possibility of enhanced volatility and a potential rally towards $0.1500 in the near future.

Price Volume Profile

An analysis of XLM's price-to-volume profile reveals a retracement trend in recent sessions. The price action indicates seller dominance, suggesting a potential decline towards the 200-day EMA support level of $0.1180.

Volatility and Sentiment Analysis

According to Santiment data, XLM's price volatility has remained subdued, hovering below the midline zone near 0.013. Conversely, the weighted sentiment exhibits a positive outlook, standing at approximately 0.475.

Social Dominance and Follower Count

Social dominance data for XLM has witnessed a notable surge, rising over 15% to reach 0.289%. However, the X followers data has plummeted by 450% to -185, indicating a sharp decline in interest from the community.

Development Activity and Open Interest

In the wake of the recent price decline, XLM's development activity has dropped by more than 45%, falling to 164 this week. Derivative data suggests a long unwinding activity, with open interest decreasing by 1.89% to $38.49 million in the preceding 24 hours.

Technical Indicators

Fibonacci levels indicate that XLM has retraced to the 38.2% zone and slipped beneath the mid Bollinger Band support. The relative strength index (RSI) curve remains below the midline, reflecting negative divergence on the charts.

Key Technical Levels

Support Levels: $0.1150 and $0.1000

Resistance Levels: $0.1320 and $0.1500

Conclusion

The Stellar coin's price has retreated to the 100-day EMA zone, exhibiting retracement behaviors in the recent past. Traders anticipate further declines, with a potential retest of the 200-day EMA support region near $0.1100 in the forthcoming sessions.

The views and opinions expressed in this article are solely for informational purposes and do not constitute financial advice. Investors should conduct their due diligence and seek professional guidance before making any investment decisions.