The price of steller lumens declined for the third consecutive day as the fear spread in the cryptocurrency market.
The stalm (XLM) fell to $ 0.2740, its lowest level since 3 February, and now 57% below its peak in November.
It has an accident with most cryptocurrency in the form of bitcoin (BTC) and atherem (ath).
The staller may be at risk after the price of Ripple is retreated and forms a risky head and shoulder pattern, As we wrote on Monday. An H&S pattern is made of one head, two shoulders and a neckline. This is one of the most recession chart patterns in technical analysis, which means that XRP price may soon dive.
The Cryptocurrency industry and their shared origin have historically excessively corrected due to their roles. The founder of the steller, Z McCelab, was one of the original creators of Ripple. Both network focuses on payment and obtains high obstacles to obtain approval for their respective exchange-traded funds from the Securities and Exchange Commission. As a result, the decline in the price of the ripple may be more weak.
Fundamentals of the steller suggest this week and negative risk. Data of the Sentimen shows that the total open interest for the steller has increased to 64.5 million, the lowest level since November.
Additionally, the social volume metric has fallen to 0.28, below the last year’s high 0.55, which indicates less attention to social media. Historically, cryptocurrency prices perform better when social media engagement is high.
XLM price analysis
The daily chart shows that the staller has created a series of lower climb and lower height. These price movements have created a descending channel pattern, which confirms the trend below.
The staller is also approaching a death cross, which occurs when 50-day and 200-day moving averages intercepted. Additionally, it has fallen below 61.8% fibonacci retracement level, a major technical field where most of the pullbacks are.
Given these factors, there is a risk that the steller will continue to fall, with the next reference level $ 0.2056, 78.6% Retressment Point, which is about 28% below the current level.
