Investors who evaluated the recent local bottoms have gained some profit. However, these types of downturns require attention. In the past, we have seen many popular altcoins make new bottoms. But the so-called bottoms that provide long-term buying opportunities usually lead to deeper ones. So, can the current price be a buying opportunity for XLM Coin? Which levels are critical for investors?
Stellar is facing ongoing selling pressure, resembling revenge for the recent major rallies. The popular altcoin has been consolidating its monthly gains above $0.1250 since mid-July. However, the recent downward pressure has caused a retracement towards $0.115. If this critical zone is lost, sellers can push the price even lower.
Bulls are currently trying to hold on to $0.115, which is the peak of the first quarter, with hopes of further upward movement. However, bears have not given up yet. A weekly close below $0.131 will pull XLM down to the price consolidation range of $0.099 – $0.131, which is the third quarter of 2022. This means there is a possibility of adding another zero to the price.
So, what are the expectations on the bullish side? If we see a move above $0.131 and it is supported by closings, the price may enter an uptrend again. However, on the other hand, the continuous flirting of the BTC price with $25,000 suggests that the bullish expectations may be overly optimistic. OBV indicates weakening demand for the popular altcoin. RSI is still in the negative zone.
According to Coinalyze, there have been significant fluctuations in funding rates since mid-August, and the tide has turned in favor of sellers. Cumulative green bars indicate positive funding rates and bullish signs, while red bars capture the downward trend. If XLM follows a similar path to the price movement in the third quarter of 2022, short sellers can make easy profits.
Bitcoin‘s price currently finds buyers at $26,075. Many important developments in the coming week will be decisive for cryptocurrencies.