Stellar (XLM) has been facing a 6% price decline, signaling a potential downward trend in the market. The ongoing tariff war between the United States and other countries has contributed to the bearish sentiment, with XLM struggling to maintain its key support level of $0.23.
Technical analysis suggests that XLM is currently moving within a falling wedge pattern on the daily time frame. The recent price drop has put pressure on the cryptocurrency, causing it to head towards the lower boundary of the pattern. Historically, this support level has been a zone for price reversals or rebounds. However, failing to hold this level could lead XLM to decline by 16% and reach the next support level at $0.19 in the near future.
The XLM price prediction remains uncertain, with experts debating whether the asset will see a reversal with upside momentum or continue its decline. The daily chart indicates a potential drop to the $0.19 level, where a price reversal could occur. If the downside momentum persists, XLM could fall by another 25% and reach $0.14.
Currently, XLM is trading near $0.22, recording a 6% price decline in the past 24 hours. The trading volume has also decreased by 50%, indicating lower participation from traders and investors.
In addition to the bearish price action, traders are making significant bearish bets on XLM. Data from the on-chain analytics firm Coinglass shows that traders are over-leveraged at the $0.212 level on the lower side, with $1.80 million worth of long positions. On the upper side, the $0.234 level is another over-leveraged zone, with $2.37 million worth of short positions opened by traders. This suggests a bearish sentiment among traders, which could further push XLM lower in the coming days.
Overall, the future of XLM remains uncertain as it faces downward pressure in the market. Traders and investors will be closely monitoring key support levels and market sentiment to gauge the potential direction of the cryptocurrency in the days ahead.