Stellar’s XLM consolidated at $0.2975 on Tuesday, but lagged the broader crypto market by 3.53%, highlighting weak relative strength.
Trading volume fell 21% below the 30-day average, indicating limited conviction behind the move. Analysts said the price action appeared driven by retail trading, with little evidence of institutional support, a key ingredient for a sustained rally.
XLM fell from $0.3194 to $0.2952 before a strong V-shaped recovery to $0.2980, hinting at a possible accumulation near the $0.2950 support. However, the moderate volume suggests that any break above the $0.3000 to $0.3050 zone will require stronger participation from larger players.
Technical analysis
- Support/Resistance
- Primary support remains at $0.2950.
- A resistance group is forming between $0.3000 and $0.3050, with critical resistance at $0.3200 following the previous breakout.
- Volume analysis
- The volume of 81.9 million (up 198% from the 24-hour SMA) marked the reversal point.
- Overall session volume was 21% below the 30-day average, indicating weak conviction behind the move.
- Chart Patterns
- The V-shaped recovery from the session lows suggests a possible double bottom formation.
- Confirmation of sustained volume is required to validate the pattern.
- Risk/Reward
- The current positioning at $0.2975 offers a favorable setup.
- Tight stops below the $0.2950 support, with targets at the $0.3050 resistance zone.
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