Amidst the volatile market conditions, Stellar (XLM) is currently at a critical juncture, with investors and traders uncertain about its future. The recent sharp decline in the XLM token price by 38% has left many in doubt. However, there has been a slight uptick in the past two days, which is starting to change the sentiment in the market.
Technical analysis of Stellar (XLM) indicates that the token has been facing resistance from a descending trendline during the recent price drop. But now, it seems to be on the cusp of a breakout. Experts believe that this moment is crucial for XLM, as it will determine whether the token will rally or plummet in the coming days. If XLM manages to break above the descending trendline resistance and closes a daily or four-hour candle above the $0.35 level, there is a strong possibility that it could rise by 22% to reach $0.43 in the near future.
Conversely, if XLM fails to breach this level, there is a risk of a 10% drop to the $0.30 level. Despite this uncertainty, XLM is currently trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, signaling a bullish trend.
As of now, XLM is trading around $0.346, with a 3.50% increase in the past 24 hours. However, the confusing price action pattern has led to a decrease in trader and investor participation, resulting in a 4% drop in trading volume.
In recent developments, data from Coinglass has revealed that investors have been offloading XLM tokens, with exchanges experiencing an outflow of tokens worth $4 million in the last 48 hours. On the flip side, XLM’s open interest has seen a 9% increase in the past 24 hours, indicating a growing interest from traders and the formation of new positions.
In conclusion, Stellar (XLM) is currently at a critical juncture, with the potential for both a bullish breakout and a bearish reversal. Traders and investors are advised to closely monitor the price action and key levels to make informed decisions in the volatile market environment.