Bitcoin’s price has seen a rapid descent, dropping below the $65,000 mark after initially breaching $66,482. This decline occurs despite new highs in the US stock market, reflecting the volatile nature of the cryptocurrency markets. Concerns among investors are heightened by potential billion-dollar sales from the German government and ongoing BTC transfers to exchanges. Additionally, the summer months are typically known for market slowdowns. What predictions can be made for XLM Coin?
Why is Investor Interest in Altcoins Declining?
Interest in altcoins is waning following significant liquidations in futures trading. Stellar’s derivatives market volume stands at $31.04 million, having dropped 52% in the last 24 hours. On-chain data shows that derivatives volume peaked on March 12 at $78.18 million and has been declining steadily since, reaching its lowest level since May 1.
A drop in futures volume indicates a decrease in professional investor interest, which could lead to continued price losses. Moreover, the lack of interest in futures could weaken liquidity in the spot market, triggering sharper declines as investors lose confidence and sell off their holdings.
Does RSI Indicate Overselling?
The key indicator reflecting investor interest, RSI, is currently at 36.31, suggesting that XLM Coin is nearing oversold territory. The RSI value, measured on a scale from 0 to 100, signals overbuying at levels above 70 and overselling below 30.
Key Insights for Investors
Actionable Insights:
– Monitor BTC price movements closely; a failure to reclaim $66,000 could prolong bearish trends.
– Observe RSI levels for potential recovery signals in XLM Coin.
– Keep an eye on derivatives market volumes for signs of renewed investor interest.
– Consider the impact of government sales and exchange transfers on market sentiment.
Conclusion
On June 8, XLM Coin’s price fell below the $0.1 support level it had maintained since June 7, forming a horizontal channel and turning long-term support into resistance. The $0.09 support is now seen as the last stop before deeper declines, potentially leading to a drop to $0.08 if bulls cannot hold this level. Reclaiming the $0.1 mark could reverse the negative trend. However, as long as BTC continues to slide, the bearish momentum is expected to persist. At the time of writing, BTC is trading at $64,800.