The Stellar Lumens price has suffered its longest losing streak in 2021. So is the latest decline a buying opportunity, or could XLM go even lower still?
Stellar Lumens (XLM) is last trading at $0.2889, down -$0.00055 (-0.20%)
Cryptocurrency investors are accustomed to volatility. In the last 7 months, the Stellar Lumens price has more than halved on four separate occasions and subsequently rally to a new high within weeks. However, this is the first time XLM has gone a whole week without a green day.
XLM is now 66% below this year’s high at $0.8050 and approaching the $0.2564 low point of May’s crypto crash. Given its chequered trading history, the latest bout of liquidation could be another step on the path to yet another new high. However, there is always the possibility that things are different this time around.
The daily chart offers little in the way of positive signals.
The 50-day moving average has crossed below the 100-day. This Bearish-crossover indicates the momentum is firmly negative.
Furthermore, the relative strength index (RSI) continues to grind lower, and the current 32.75 reading its lowest point in 2021, indicating XLM is close to an oversold condition.
However, the decline has been fairly orderly, and the Stellar Lumens price volatility is trending lower.
Nonetheless, some potential areas of interest on the downside can be seen at $0.2270 and $0.1150.
The former should be considered the first and maybe the most important area of support for XLM. If Stellar fails to hold this key area, it could be subject to another round of liquidation, targeting $0.1150 and evaporating all of 2021’s gains.
Of course, this is a worst-case scenario, and XLM should consolidate above $0.2270.
That being said, there are no signs that the price will reverse this negative trajectory just yet. And until some confidence returns to the market as a whole, the likeliest outcome is a slow bleed lower to sideways.
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