Altcoin investors have been quite frustrated in the past few months, as the losses of BTC have had a compounding effect on altcoins. Many altcoins that were in an upward trend have reversed. In fact, we have seen many popular cryptocurrencies hit their all-time lows. This is where the cruelty of bear markets comes into play. So, what will happen to XLM Coin?
If the Bitcoin price hadn’t fluctuated so much in the past month, XLM Coin investors could have made much more profit. After the peak in July, the price of XLM Coin started to decline along with the negativity in the overall market sentiment. Since reaching its yearly high of $0.195 in July 2023, the token has dropped to a support level of $0.105 in August.
Despite all the negativity, the lower wick in the support zone shows that XLM Coin bulls want to keep the price in this zone. Currently, the XLM Coin price is more than 10% above the support level and faces the risk of retesting the support zone depending on the performance of BTC price.
The RSI indicates that the uptrend could gain momentum. The current situation on the macro front suggests some relief after the Fed meeting. If the optimistic scenario comes true, the next resistance is approximately 100% above the current price and the $0.235 region could be tested. Moreover, XLM is not currently listed for liquidation on FTX.
The readings on the daily chart are relatively mixed. The XLM price broke out from a declining resistance line on September 4th. This breakout signal was expected to lead to a significant price increase. However, this did not happen, and buyers weakened at the famous $0.130 resistance. This situation can be considered as a bearish signal.
In summary, the critical area that investors should watch is at $0.13, and surpassing this zone strongly will reveal a potential increase of nearly 100%. On the other hand, if the opposite scenario occurs, the $0.105 support could be retested. The overall market sentiment has not turned clearly positive yet. BTC has been fluctuating between the liquidation zones in futures trading for the past few days, causing the price to remain in a narrow range.