- XLM faces a potential 30% price dip due to weakening support and selling pressure.
- Significant inflows to exchanges signal potential selling, contributing to XLM’s bearish outlook.
- Falling open interest and liquidation risks show traders’ reluctance, adding to the price decline.
Stellar Lumens—XLM, faces serious pressure in a bearish market. After a significant sell-off, the altcoin shows signs of further decline. A critical support level is weakening, raising concerns. If XLM fails to hold this level, analysts predict a potential 30% price drop. Let’s take a closer look at the technical indicators and market factors behind this potential dip.
Technical Indicators and Key Levels to Watch
XLM has formed a descending triangle pattern on the daily chart. This suggests a possible breach of support. The $0.334 level has been tested three times in the past month. With each test, the support seems to weaken. If XLM closes below the $0.325 level, a 30% drop could follow. A move down to $0.225 may occur if the selling pressure continues.
Bearish Market Sentiment and On-Chain Metrics
On-chain data from Coinglass paints a bearish picture for XLM. The token has seen a large inflow of $3.9 million into exchanges. This typically signals that long-term holders are preparing to sell. When assets move to exchanges, traders often expect a price decline.
Additionally, XLM’s open interest dropped 4.5% in just 24 hours. This shows traders are reluctant to open new positions amid market fear. Traders with long positions at $0.342 are at risk of liquidation if prices dip further. Short sellers have built significant positions around $0.373, betting the price will not rise past this point.
XLM shows clear signs of a potential price decline. The token faces weak support, growing selling pressure, and bearish market sentiment. If XLM falls below $0.325, a 30% drop could follow. Watch the $0.325 and $0.342 levels closely, as these could trigger a significant move in price.
The post Stellar Faces Risk of 30% Price Dip: What’s Driving XLM’s Potential Dip? appeared first on Crypto News Land.
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