Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Selling pressure intensified at a critical support level, as sellers looked to surmount the $0.11 hurdle.
- The bearish advantage was evident in the futures market with shorts holding a 53.26% share of the open contracts.
Sellers remained camped at a critical support level for Stellar Lumens [XLM]. The $0.11 support has served as a bullish blocker over a month-long period with bears unable to break below the level.
How much are 1,10,100 XLMs worth today?
However, the continued selling pressure along with the bearish market sentiment could see the support level flipped to resistance in the coming days.
Can bulls withstand another round of selling pressure?
After XLM’s market structure flipped bearish in early August, the $0.11 support level has been tested thrice. The recent test of the level has seen bears shell the support level over a week-long period.
A look southward showed that the support level was defended by bulls on 18 August and 3 September. However, the constant selling pressure could see the support level taken over by bears.
The Relative Strength Index (RSI) remained firmly under the neutral 50 to highlight the lack of buying pressure. Similarly, the Chaikin Money Flow (CMF) dipped under zero with a negative reading of -0.12.
A break of the support level could see XLM sink to $0.096. This support level was last seen in July and provided the base for XLM’s biggest single-day pump in 2023. Bulls would be hoping for a repeat if the price gets to the level in the short term.
Read Stellar Lumens’ [XLM] Price Prediction 2023-24
Bears have the advantage
The exchange long/short ratio data from Coinglass revealed a strong bearish bias by market speculators. Shorts held a 53.26% share of the open contracts on the four-hour timeframe. Furthermore, this highlighted the increased likelihood of the support level giving way to the selling pressure in the short term.
Traders should monitor market conditions and track Bitcoin’s [BTC] price action for optimized shorting opportunities.