Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Stellar (XLM) has lost over 6% of its price value in the last 24 hours. The XRP rival appears likely to drop into more bearish territory, as its three-hour chart indicates a death cross is on the horizon. According to CoinMarketCap data, the formation of a death cross is imminent, as indicated by shifts in the 9-day and 26-day moving averages.
Bearish pattern emerges as XLM price slips
Notably, a death cross is a technical pattern that often signals a prolonged period of decline. This period is also characterized by declining investor confidence in the asset.
On the crypto market, Stellar is witnessing very low interest from investors as trading volume has dropped by a significant 12.43% to $845.92 million.
According to the death cross, it appears likely to form within a price range of between $0.4680 and $0.4684. Meanwhile, Stellar has slipped from its peak of $0.493 on a downward path. As of press time, Stellar is trading at $0.4608, representing a 6.45% decline over the last 24 hours.
Beyond the death cross, Stellar’s Relative Strength Index (RSI) at 74.93 indicates that the asset is slightly overbought and has weak momentum in terms of price. Additionally, the broader crypto market correction is also impacting the price outlook of XLM.
Stellar’s past gains wiped
The current market setup represents a significant shift from the first week of July, when Stellar was outperforming its rival, XRP. Then, XLM had diverged from XRP by as high as 5%, in a move that caught the attention of investors in the space.
Although XRP is also experiencing bearish pressure from the general market downturn, its price has decreased by 3.47% and is not as high as Stellar’s.
Another bullish trigger for Stellar at the start of the month was the release of the Stellar Core v23.0.0rc2 update. The update, which aimed to lower the costs of making cross-contact calls, resulted in an 8% price increase at the time.
Vladislav Sopov
U.Today Editorial Team