- XLM coin is down by 25% in just days with no major signs of reversal.
- The XLM/BTC pair was trading at 0.000008098 BTC with a loss of 3.82%
- The current price of XLM coin stands at $0.275, established on the back of an 8.73% decrease in the past 24 hours.
In the daily time frame, XLM coin price dropped 25% in just five days from the last resistance it faced at $0.36 with no signs of reversal yet. The price showed five-strong red candles back to back and violated a support level of $0.315. Currently, it continues to fall and shows no strong support till $0.23( also the 0.786 FIB level).
Regarding the EMA’s, XLM token is trading below all crucial EMA’s 20, 50, 100, and 200, confirming a strong bearish trend. In addition, investors can also notice a death crossover between 50-100 and the 20-200 supporting the bearish sentiment.
The RSI (BEARISH) value is at 31, indicating strong bearish momentum. Also, as the price is moving down, the RSI is entering the overselling zone.
XLM Coin Resonating In A Falling Wedge Pattern
The 4hr time frame chart of the XLM token shows a formation of a falling wedge pattern. Such a pattern travels in a downtrend and is expected to give a bullish breakout from the descending resistance trendline. Investors can wait for a breakout from this pattern before entering the market.
The MACD indicator (BEARISH) shows strong bearish sentiment as both the MACD line and the signal line are moving below the neutral zone(0.00). As the price keeps falling, these lines also show some sharp fall supporting the bearish momentum.
Conclusion: From the technical perspective, the overall trend of the market is bearish. Also, investors can see the price is respecting the falling wedge pattern and could provide a good opportunity when the price gives a breakout from this pattern.