Stellar (XLM) price has declined 10% over the past seven days as it struggles to maintain its $10 billion market capitalization, which currently stands at $10.87 billion. Momentum indicators such as the RSI are showing a sharp decline, indicating increased selling pressure and a possible move closer to oversold conditions.
The Ichimoku cloud chart further reinforces a bearish outlook, with XLM trading below the cloud and showing no immediate signs of reversal. Traders are closely watching the $0.351 support level as failure to hold could lead to further declines, while a successful bounce could pave the way for a recovery towards $0.40 and higher.
Stellar RSI is neutral, but going down
The Relative Stellar Strength Index (RSI) is currently at 39.9, a sharp drop from over 60 just two days ago on December 24. This significant decline indicates a rapid loss of buying momentum, with the market moving towards bearish sentiment.
The move from a previously strong neutral range into lower RSI territory suggests increased selling pressure, bringing XLM closer to oversold conditions, although it has not fully entered that zone yet.
XLM RSI. Source: TradingView
The RSI, a momentum oscillator, measures the speed and magnitude of price changes on a scale of 0 to 100. Values above 70 indicate overbought conditions that often precede a price correction, while values Below 30 suggests oversold conditions, which could indicate a rebound.
With XLM RSI at 39.9 and falling rapidly, the coin is teetering on the edge of bearish momentum, indicating the possibility of further decline in the near term. If the selling pressure continues, XLM price may test lower levels, but if buyers re-enter and stabilize the market, a possible rebound could prevent further losses.
XLM Ichimoku Cloud shows strong bearish setup
The Ichimoku Cloud chart for XLM indicates a bearish outlook as the price is currently trading below the cloud (red and green shaded areas), indicating downward momentum.
The blue conversion line (Tenkan-sen) is below the red baseline (Kijun-sen), further confirming the bearish sentiment and suggesting that sellers currently dominate the market. Furthermore, the price has failed to break above the cloud in recent attempts, reinforcing the strength of the downtrend.
XLM Ichimoku Cloud. Source: TradingView
The lagging leg (green line) is positioned below both the price and the cloud, further emphasizing the persistent bearish pressure.
The future cloud (red) shows that the initial leg A (green edge) remains below the main leg B (red edge), projecting continued bearish sentiment in the near term. These indicators suggest that XLM price is likely to remain under pressure, with limited signs of an imminent reversal unless a significant shift in momentum occurs.
XLM Price Prediction: Will $0.351 Support Hold Strong?
Stellar price is currently trading near a critical support level at $0.351.
If this support does not hold, XLM price could face further bearish pressure, and the price could fall as low as $0.31.
XLM price analysis. Source: TradingView
On the other hand, if XLM manages to hold above the $0.351 support and rebound, it could regain bullish momentum and test the resistance at $0.40.
Breaking this resistance could open the door for XLM to rise further, potentially testing the next significant level at $0.47.
