Stellar (XLM) is heading into February with tightening price action, as technical charts suggest a possible volatility-driven move in the weeks ahead.
Stellar is a payments network built on blockchain technology, and the native currency for Stellar is called XLM. The native currency, XLM, often sees directional movements during times of compression in the crypto marketplace.
XLM remains under pressure in the higher timeframes going into February, and short-term technical indicators are telling of an expansion in the price. At press time, the coin is trading at $0.1585 with a decline of 0.75% over the past 24 hours.
Chart Sets the February Trend
On the TradingView daily chart of XLM/USDT, the price structure is reflective of a broader downtrend as we enter February. Since the MACD is still below the signal line, the downtrend should continue; furthermore, the RSI is near oversold, indicating low buying pressure.
Because of this setup, the coin continues to remain in a cautious area as selling pressure persists until there is a bullish cross of momentum.
Also Read: Stellar (XLM) Tests $0.15 Support as Analysts Warn of a Drop Toward $0.09
Analyst Flags February Volatility Window
Stellar appears to be ready for an 8% price shift, according to crypto analyst Ali Charts, based on his 30-minute chart setup. The contract demonstrates a narrowing range most frequently associated with increasing volatility.
There is no indication as to what direction he sees the breakout going and based on the technical structure; February offers potential for more defined price moves when XLM exits this tight trading range.
Typically, this type of structure draws in short-term traders wanting to profit from bursts of momentum; therefore, there is likely to be higher trading volume near major breakout levels in the month of February.
With February approaching, it seems as though Stellar will be experiencing volatility instead of a breakout. The daily chart continues to show signs of caution; however, the shorter-term setup suggests there could be a potential 8% move during the month.
Traders should look for confirmation signals prior to expecting to see a sustained direction, as February will likely determine its near-term outlook.
Also Read: XLM Price Prediction: Could Stellar Reach $1 Sooner Than Expected?
