Over the past 24 hours, XLM has seen some minor consolidation. After 4 consecutive days of losses, the coin has managed to register a modest 2% jump. But it is still a passing cloud. In fact, the bearish outlook on XLM is strong, especially now that we have seen a drop in trading volume. Here are some pointers:
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XLM has seen a 28% drop in the past week
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Trading volume also declined sharply over the same period
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Despite the slight correction, the coin is likely to continue its downward trend for a few weeks.
Data Source: TradingView
Stellar: A bear on the loose?
It is understandable that XLM is bearish and will remain so for at least another month. The market has left no room for profit as most of the major coins continue to sell. But the trend of XLM is quite worrying.
Sikka actually saw some good runs in May. In fact, by June, we saw a strong relief rally for XLM, which took it above several key support areas. But over the past two weeks, slowing momentum has dragged the price action down. Furthermore, momentum indicators including the RSI and Money Flow Index are showing a bearish reading.
But more importantly, there has been a sharp drop in trading volume. This suggests that many investors are taking a break from XLM as they wait for the market to turn. With all these factors, XLM will continue to trend lower and may even reach a new 2022 low in the coming days.
Should you buy XLM Dips?
Well, for now it’s best to wait. The market is on a downside right now, and even if we see a relief rally, it will be short-lived.
There is still another 40 – 50% drop in XLM. Wait till the bottom of it before jumping in to take the plunge. It may take a few weeks or even earlier for this to happen.