Star prices move lower, can the bulls overcome this resistance?

Star prices have continued to head south over the past 24 hours. In the last day, XLM lost more than 6 percent of its market value.

Stellar recently recorded positive price sentiment due to an update spreading optimism in the XLM community.

With the latest update, Stellar users can now transfer USDC and Stellar Lumens via email. Despite the update, technical indicators sided with the bears on the one-day chart.

Although the number of buyers is higher compared to the number of sellers, the purchasing power has decreased significantly.

Stellar’s price has increased by 7% in the past week. However, at press time, the bulls seem to have weakened. The current support zone for XLM stands between $0.111 and $0.106.

A drop from the $0.106 mark would push Stellar’s price to touch the $0.99 price mark.

Broad market support will be necessary for most altcoins to recover. If buyers don’t pick up pace and XLM doesn’t break above the 20-SMA, the altcoin is headed for further declines.

Star Price Analysis: One Day Chart

Stellar price
Stellar at $0.112 on a daily chart | Source: XLMUSD by TradingView

XLM was trading at $0.112 at the time of writing. The coin was unable to hold on to weekly gains and fell on the chart as buying strength waned.

It is necessary for the bulls to defend Stellar at the level of $0.111, otherwise the price of Stellar may fall to $0.106. Once the coin touches the $0.106 mark, it may also fall to the $0.99 level.

Overhead resistance for the coin stands at $0.116. A move above that level could push the coin towards $0.119. Stellar trading volume declined in the previous trading session, indicating a failure of buying strength.

Technical analysis

Stellar price
Stellar registers a buy discount on the one-day chart Source: XLMUSD by TradingView

XLM was still not in oversold territory, but if buyers continue to decline, sellers will soon take over.

Stellar was good last week, but the bulls could not pass the resistance mark of $0.116, which caused the coin to fall in price.

The relative strength index was right at the halfway line, and that indicates an equal number of buyers and sellers.

A fall in demand will immediately push Stellar’s price below the 20-SMA line. This means that the sellers were driving the price momentum in the market.

Stellar price
Constellation Buy Signal in One Day Chart | Source: XLMUSD by TradingView

As XLM continues to show a buy signal on the intraday chart, there may be an opportunity for Stellar to take the price.

Moving average volatility measures the price momentum and overall price direction of an altcoin.

MACD continues to make green signals corresponding to the coin’s buy signal. Although the green histogram is decreasing on the chart, which is a sign of increasing selling strength, sellers have not yet taken it.

Parabolic SAR shows the price action of an altcoin. The dotted lines below the price candle mean that XLM may rise again on the chart with sustained demand.

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