Stellar [XLM] was one of the few altcoins in the top 20 crypto assets that saw a surge in daily trading volume. Yet, the token price was down by 3.94% in the past 24 hours.
Its Open Interest has also shrunk by close to 7% in the same window. This slide in price and OI indicated a slump in confidence amongst speculative traders.
In the long-term, there is a route to $1 for XLM crypto. The central argument for the altcoin’s increased valuation revolves around institutional adoption.
Recently, the Depository Trust & Clearing Corporation [DTCC] and the Stellar Development Foundation [SDF] announced plans to connect the former’s tokenization platform to the Stellar crypto network.
Here’s what swing traders and investors need to watch out for.
The XLM crypto long-term uptrend versus the short-term bearishness
The road to $1 remains a bullish dream. In the past three cycles, the highest XLM crypto could reach was $0.93. It has been rebuffed from the $0.65 supply zone in the previous two cycles.
On the bright side, the token has made higher lows since late 2017. The closest swing point to monitor is the $0.136 support. So long as these supports [green] hold, there is a chance for a recovery.
Though the structure on the 1-day timeframe was bullish, the technical indicators showed firm selling pressure. The A/D indicator was slowly trending downward, and the CMF was stubbornly below -0.05.
The XLM crypto reaction from the 78.6% Fibonacci retracement level at $0.173 was lacking, too. These findings reinforced the bearish bias in the short-term.
AMBCrypto reported that the drop below $0.173 was an early indication of further drawdown. The token was not yet able to climb back above $0.175 and flip its short-term bias bullishly.
Final Summary
- The XLM crypto push toward $1 has been rebuffed across three cycles and would depend on institutional adoption to succeed.
- In the short-term, the slip below the $0.173 support was a bearish development.