Stellar moves sideways: Has XLM lost its bullish momentum?
Stellar is a peer-to-peer transactions network dedicated to financial systems designed to transact financial data and resources smoothly at lower costs. It also helps in decentralized finance and applications with a wide range of real-world use cases. That is why crypto enthusiasts are curious about the future potentials of XLM in the next few years.
After taking strong support around $0.06, XLM started an uptrend, and now it is trading around $0.09. We think it is a good time to invest for the short term because the candlesticks are moving sideways, and Stellar may take another support of around $0.087.
Technically, candlesticks are forming around the baseline of the Bollinger Bands, and other technical indicators such as MACD and RSI are neutral, suggesting a continuation of the current trend.
This consolidation is an ideal buying opportunity for a short-term investor because if Stellar breaks support, the bearishness will continue. For more details regarding the Stellar price projections in the coming years, click here!
For the long-term, Stellar is still bearish for the long term as candlesticks are forming in the lower Bollinger Bands. After forming four weekly green candles, it faces resistance around the baseline, suggesting a continuation of this downtrend by breaking the support of $0.07 in the next few weeks.
Other technical indicators are neutral at this time. Based on the long-term price action and technical indicators, we do not think it is an ideal time to invest for the next few months. However, if you are interested, you can invest for the short term (though it is risky) with a strict target and stop loss.
XLM will not turn long-term bullish until it crosses $0.15. If you are adding XLM to your crypto portfolio, you must keep a closer eye on the price action because XLM will be volatile this year. You must book profit at the right time to avoid loss of value. Otherwise, you can find other altcoins, especially Ethereum, which has turned bullish in the first month of 2023.