Stellar Lumens (XLM) is navigating troubled waters with a disappointing 8% drop, coming on the heels of the much-anticipated ‘Real World’ campaign launched jointly with actor Idris Elba. For over 10 days, the Stellar community had eagerly anticipated this announcement. The initiative, aimed at highlighting notable Stellar ecosystem projects like the transparency initiatives of the International Rescue Committee, seemingly had the perfect face in Elba. Yet, the market response seemed to align with the ‘sell the news’ principle.
Why did XLM Crash?
Stellar Lumens (XLM) recently experienced a significant price crash, largely attributed to the market’s reaction to an anticipated announcement. The community had been abuzz for days, eagerly awaiting news that many hoped would be a positive catalyst for XLM’s valuation. However, when the details were finally revealed, they fell short of the heightened expectations. This stark contrast between anticipation and reality led to widespread disappointment, triggering a swift sell-off and causing the XLM price to take a downward turn. The incident serves as a potent reminder of how sentiment-driven the cryptocurrency market can be, where the buildup to news can sometimes overshadow the content of the announcement itself.
Stellar XLM Price Analysis
Currently, Stellar is valued at $0.119, marking a 7-days drop of -9.40%. This decline followed closely on the -8.86% dip sparked by the recent campaign reveal. Notably, this dip made XLM relinquish its support from the 20-day moving average (20DMA), a significant position it had secured just before the September 4 announcement. For context, the 20DMA had previously constrained XLM’s upward trajectory for a continuous 33 days in August. This current downturn raises concerns about Stellar’s potential to face a downward trend over the next month.
Looking at potential fallback points, there’s a chance that XLM might descend to a support level of $0.11, with further drops at around $0.105.
Will Stellar XLM Price Recover?
All is not bleak for Stellar. The 8% slump has driven the Relative Strength Index (RSI) back to an oversold position at 45. Though this might suggest the bulk of the decline is past us, it could also indicate a protracted phase of stabilization below the 20DMA. The Moving Average Convergence Divergence (MACD) remains bullish, exhibiting a bullish divergence at 0.0007, hinting at a possible period of consolidation.
In the coming weeks, given the consolidation above the 200DMA, we might witness a relatively stable price movement. This paints a short-term picture where the upside could aim for a 20DMA of $0.125 (a potential rise of 3.34%), while the downside might pull XLM down to $0.11 (a possible decline of 9.06%).
You might also like