XLM Price Prediction: Stellar screams sell as technicals flip massively bearish

Stellar has lost a significant amount of its value from the yearly high traded at $0.6. The correction from this level was accentuated by the bearish wave that swept across the market on Monday. Recently, support was established at $0.36, but recovery has been limited under a descending trendline.

Stellar eyes another dip before recovery

Over the last 24 hours, Stellar has lost only 0.9% of its value and is 5% down in a period of seven days. At the time of writing, the cross-border token is teetering at $0.39, while bulls battle critical resistance at the ascending trendline.

If the immediate resistance stays put, we can anticipate declines to continue in the near term. Meanwhile, the Moving Average Convergence Divergence (MACD) points that the least resistance path is to the south. Note that the MACD line (blue) is below the signal line, thus cementing the bears’ presence in the market.

XLM/USD 4-hour chart

The SuperTrend indicator has latterly turned bearish, suggesting to investors to short Stellar. This indicator sends long-term signals for traders to either short or long an asset. With the signal currently in red and above the price, declines are most likely to continue toward the 100 Simple Moving Average, at $0.3.

Looking at the other side of the picture

Two key levels cap stellar’s upside; the descending trendline and the 50 SMA. If a sideways price action comes into the picture, stability will return, allowing bulls to focus on higher levels. Trading above these hurdles would serve as a huge bullish signal for an upswing back to $0.6