The cryptocurrency market entered the green zone today after the breakdown we experienced yesterday. Leading crypto Bitcoin managed to regain 26 thousand dollars. In addition, most altcoins are about to recover their losses. However, an altcoin is moving in the opposite direction of the market as the promising announcement did not meet expectations.
Stellar’The countdown is over: The big announcement has arrived!
Managing expectations in the crypto market is very important. We understood this better with a recent incident. Stellar (XLM), a peer-to-peer (P2P) decentralized network created by the Stellar Development Foundation or Stellar.org, started a countdown a while ago and shared that something big is coming. The countdown in question created an expectation in the community that there would be a significant development. As a matter of fact, this was also reflected in the price of its token, XLM.
The countdown started by Stellar has ended today. The altcoin project team gave the good news of a new web page for XLM. The team appeared before the community with an announcement saying, “The wait is over, here is the new Stellar.” However, this announcement does not seem to have met expectations. The reaction of the community to the post and the course of the altcoin price also show this.
After the announcement, the altcoin price started to decline!
The altcoin has recently performed better than most cryptocurrencies on the market. However, Stellar’s announcement, which did not meet the high expectations, had the opposite effect on investors. cryptokoin.comAs you follow from , the market entered the recovery phase today after the sharp decline yesterday. Despite this, XLM started to move in the opposite direction in the market. Undoubtedly, the lackluster announcement had an impact on this. At press time, XLM is trading at $0.1285, down 1.85% on a daily basis.
However, the variable structure of the market should not be ignored. As a matter of fact, there are analysts who predict an increase for Stellar. One of them is crypto analyst Valdrin Tahiri. If you want, let’s take a look at the analyst’s technical analysis.
XLM price bounces at long-term support
Weekly time frame technical analysis for XLM provides a mostly bullish outlook. The main reason for this is the breakout from the long-term descending resistance line in January and subsequent recovery of the $0.105 horizontal area. Prior to this, the region served as support from April to October 2022. XLM, which failed to exit in April 2023, finally exited in July and reached a high level of $0.195. However, the altcoin price has fallen since then. During this process, the price formed a long upper wick (red icon).
Despite the decline, XLM confirmed the $0.105 horizontal area and rebounded. Such a retest is common after the price breaks out of the initial resistance level. XLM is currently around 20% above the $0.105 area. Moreover, it is trading 80% below the next resistance at $0.230.
The weekly RSI is in an uptrend and supports the continuation of the rise. An RSI value above 50 during an uptrend indicates a positive position for the bulls, while an RSI value below 50 indicates the opposite. In this regard, the RSI first broke above the 50 mark (highlighted by the green circle) in June. It then confirmed this level as support in August (shown with a green icon). It is possible that the upcoming FTX liquidation will cause a bearish reaction. However, the company has not reported significant XLM holdings.
Can the altcoin price sustain its breakout?
The daily time frame also provides a bullish XLM view. However, this bullish prediction has not yet been confirmed due to the failure to reclaim a critical horizontal level. On September 4, XLM broke out of a descending resistance line that had been in place for 52 days. This was the culmination of an ongoing increase since August 16 (green icon). Following the breakout, XLM reached a high of $0.135. However, yesterday’s decline returned the price to the horizontal area of $0.13. The price needs to regain this area and confirm it as support for the trend to be confirmed as bullish. In this case, a 26% rally to the next resistance at $0.160 is possible. However, the RSI has already started to rise. The indicator broke out of the descending resistance line (green). Moreover, both broke above 50, which is a sign of an uptrend.
Despite this bullish XLM price prediction, a decline below the $0.13 area could lead to a decline to the $0.105 support area. This would mean a decrease of 15%.
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