Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XLM has been making lower highs since mid-July.
- Open Interest rates dropped and funding rates fluctuated.
Stellar [XLM] could be poised for further market control. The altcoin was firmly bearish on the higher time-frame charts. Besides, the futures market didn’t outrightly lean towards bulls as of publication.
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In the meantime, Bitcoin [BTC] continued its price range above $25.8k, and further price slump couldn’t be overruled if September’s FOMC Meeting takes a hawkish stance.
Will sellers target the previous range low
Source: XLM/USDT on TradingView
The marked areas are weekly bearish and bullish order blocks (OB). The cyan area of $0.113 – $0.130 is a weekly bearish OB and aligns with the Q2 2022 range-high. Between June – October 2022, XLM oscillated between $0.1307 and $0.0989.
On the other hand, the white area of $0.095 – $0.109 is a weekly bullish OB that has been retested twice as a support in July and August. The area also aligned with the Q2 2022 range-lows.
At the time of writing, XLM faced rejection at the confluence of the 50-EMA (Exponential Moving Average) and the previous range-high ($0.13). Besides, the daily timeframe was bearish as the price has been making lower highs since July.
So, sellers could lower XLM prices to the range-low $0.099 area in the next few days. However, bulls are expected to defend the range-lows, especially if BTC doesn’t record sharp losses in the midterm.
The CMF crossed the zero mark, demonstrating improved capital inflows. However, the RSI recovered but failed to cross above the 50-neutral mark, illustrating that buying pressure waned.
Funding rates fluctuated as Open Interest dipped
Source: Coinalyze
How much are 1,10,100 XLMs worth today?
The funding rates have fluctuated in the past few days but have been overall negative, painting a bearish inclination. In addition, the Open Interest rates improved between 18-21 August but declined steadily afterward. It further cements the bearish bias in the futures market.
However, the CVD (Cumulative Volume Delta), which tracks whether buyers or sellers have market control, maintained a steady but sluggish positive slope. It suggests that buyers had little leverage and calls for tracking of BTC movement for optimized trade set-ups.