Stellar, which has an important place in the crypto currency market $0.420156 (XLM) has suffered significant losses in recent months after the rise in the early years. In the last month, the price of XLM has decreased by 16.1 percent, while this rate reached 8.2 percent in the last week. In the last 12 hours, a 1.7 percent decrease was recorded. Although there is an increase of approximately 300 percent, which rejoices investors on an annual basis, the current technical indicators indicate that the downward pressure is strengthened.
Decline in futures supports sales pressure
The negative signals in Stellar were first accompanied by slimming in the futures market. The high amount of open position may accelerate price fluctuations and may lead to instant increases with jams. However, on July 18, the open position amount fell to $ 306.22 million with a 50 %decrease after seeing the summit with $ 588,53 million. This decrease shows that the power to trigger new rise waves in the market is reduced.
The decrease in the volume in futures may cause instant purchases and selling more effectively on the price. This is considered one of the developments that can increase sales pressure in the spot market.
Technical Analysis Indicators Support sellers
Exponental Moving Average (EMA) indicators, which stand out in the technical analysis, also pointed to negative signals in the short and medium term. In the 12 -hour price chart, 20 EMA’s downward down to 50 EMA, the sellers in the short -term superiority. Similarly, the probability of landing 50 EMA below 200 EMA in the 4 -hour graphic reminds us of previous decreases and is seen as an element that increases sales pressure.
The EMA indicator reacts faster to price movements by increasing the weight given at current prices. The short -term EMA’s long -term EMA shows that sales pressure usually continues and the downward trend can continue.
Descending triangle formation poses a risk
In daily graphs, the price of XLM moves in a formation called descending triangles and is generally considered as a decrease -oriented continuation formation. The price is around 0.39 dollars, $ 0.38 and $ 0.36 just above the support levels.
If these support levels are broken downward, technical indicators indicate that the price may decrease to $ 0.23. From the current prices, this raises the risk of an additional decrease of approximately 40 percent.
It is possible to summarize the negative table for Stellar in three important headings: the decrease in the volume of futures, downward intersections in EMA indicators and the development of triangular formation descending in the daily graph. In order to continue the sales pressure, investors’ summit levels should pass again and prices should be exceeded $ 0.43.
According to Stellar price research, “If closing over $ 0.43, the decline scenario may be canceled by breaking the triangular formation and the recovery may begin at prices”.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
