key points
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Market lacks volatility after oversold price stabilization
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$0.25 and $0.14 are holding demand and supply levels
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Stellar Approach incorporates smart contracts into its network
According to Recent announcement from official Stellar Twitter handleHowever, it appears that Stellar Coin will offer room for innovation in 2022, as the company aims to incorporate smart contracts into the Stellar network.
While this can leave a positive impact on the value of the asset. However, Stellar is known for its rapid price rise near Q1 and a sharp drop in mid-Q2 2021.
And since the market crash in May, XLM/USD extended the “swing channel” price movement below the $0.9 ATH price.
However, there is no significant evidence as to whether the asset will sustain this bearish momentum in the long term. The aftermath of $0.14 and $0.25 are marked as early short term support and resistance for the market.
With an optimistic outlook on the XLM/USD price chart. It should be noted that if Stellar price should find its way above the near-term resistance of $0.25, a bullish draw will be the next event to be recorded in the market. As the bulls are waiting for the price to cross the short term resistance level of $0.25.
Technical Analysis Approach to XLM/USD Price Action
To explain XLM/USD technical analysis in simple words. This will give a profitable entry point to the trading decision. Below is an analysis of stellar price action from the daily time frame.
The market has declined in the last six days amid the recent oversold conditions. From the daily price chart, XLM/USD extends short-term sideways price action between the supply and demand levels.
Market volatility was halted after the Average True Range indicator was pointing south, with a small body candlestick pattern printed on the daily price chart.
final thoughts
While we may be in a hurry to trade XLM/USD, market players should keep in mind the exit and entry points that must be honored before executing market orders.
At the moment, $0.25 is acting as a short term resistance, which means a break above that level will turn the entire XLM/USD ecosystem into a bullish bias. On the other hand, if the price drops below the short term support of $0.149, the asset price will resume a bearish trend south.