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Stellar Lumens (XLM) Price Analysis: Bearish Signals Prevail

Stellar XLM: is this the LAST Chance to BUY?
Stellar XLM: is this the LAST Chance to BUY?

In a recent video, Nick a technical analyst discussed the price action of Stellar Lumens (XLM) on various time frames and analyzed its potential future movements, highlighting bearish signals.

Short-term outlook

On the 1-hour chart, Nick noted that XLM has been fluctuating between bullish and bearish structures, indicating low volume and demand. Traditional EMAs and SMAs are also bearish, with XLM below the 50 SMA, 50 EMA, and 200 EMA. Elliott Wave Theory suggests a potential move to the downside, with a target range between 10.91 and 10.95.

Daily and weekly outlook

On the daily chart, Nick observed a three-wave pattern to the upside followed by a break to the downside, potentially leading to lower prices. A possible head and shoulder pattern is also being discussed on the daily chart. On the weekly chart, a Z wave structure suggests that the bear market may not be over, with potential support levels at 5.7 and 3.5.

Investment outlook

The video mentions a possible price increase if XLM finds support at 5.7, but it is not expected to outperform other cryptocurrencies significantly. Nick indicates that XLM may not be an attractive investment for them personally due to its limited potential for high returns.

Overall, the technical analysis suggests a bearish outlook for XLM in the short to medium term. Investors should carefully consider their own risk tolerance and investment goals before making any decisions.

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