Stellar’s XLM has plummeted 11% in the past week as bearish sentiment spreads across the broader crypto market.
Once the seller regains control, Altcoin faces installation of pressure, with the risk dropping further from the desired $0.50 level.
XLM Bears Push Push Prices are below key level
On the daily charts, XLM double-digit DIP pushed prices below the 20-day index moving average (EMA). The 20-day EMA is growing and forming dynamic resistance at $0.4187 above the price of the token Downward pressure on the market.
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The 20-day EMA measures the average price of assets over the last 20 days, giving weight to recent prices. When prices exceed the 20-day EMA, they show short-term bullish momentum, suggesting that buyers are in control.
Meanwhile, when asset prices are classified at this level, the market increases sales pressure and weakens short-term support. This risks XLM dropping further over the next few days.
Furthermore, XLM prices are below its West Haeun’s main span A and falling towards its main span B, confirming weak accumulation.
One-sided cloud tracks the momentum of asset market trends and identifies potential support/resistance levels.
When the asset price drops below the main span A of this indicator, it indicates that the bearish force is gaining strength. Heading towards the main span B afterwards increases the chances of deeper downsides.
Therefore, this trend suggests that the bearish trajectory of XLM may persist unless it manages a critical rebound above the cloud.
XLM slides deep into the bare area
These metrics highlight the market environment where XLM buyers are increasingly on the sidelines, giving sellers an edge. The altcoins could continue to decline unless the Bulls regain control over the clouds.
In this case, the price could drop to $0.3717. This price means that the main span B still forms dynamic support. If this level is not maintained, the XLM value could drop to $0.3620.
Meanwhile, the token price could rise and rise above the main span B at $0.4236 if the Bulls regain control.
The Post Stellar (XLM) has increased control as it first appeared in Beincrypto, as $0.50 remains out of reach.
