After a period of volatility, Stellar (XLM) is now consolidating, and its price action is offering mixed signals. Currently trading at around $0.32, XLM is testing important support levels that will likely determine its next major move. A 37% recovery to the $0.44-$0.45 range is certainly within reach, but there are also risks of further declines if the bearish momentum intensifies.
Key Support and Resistance Levels for XLM
One critical level to watch is the $0.35 support zone, which corresponds to the 100 Exponential Moving Average (EMA) and has historically acted as a reliable support area. If XLM can hold above this level, it could pave the way for a potential recovery. On the upside, the first key resistance is at $0.40, a psychological level that also aligns with short-term moving averages. If XLM can break through this resistance, it would be a significant signal that buying pressure is increasing, potentially leading to a retest of the $0.44-$0.45 range.
The Risk of Further Declines
Despite these potential recovery scenarios, XLM faces risks of further declines if bearish momentum gains strength. The $0.35 support must hold, or the cryptocurrency could face a deeper pullback. Previously, XLM was rejected in the $0.44-$0.45 range, but if the asset successfully breaks the $0.40 resistance, momentum could shift in favor of the bulls.
RSI Indicates Oversold Conditions
Technical indicators such as the Relative Strength Index (RSI) are signaling that XLM is approaching oversold territory. This suggests that buying interest could soon pick up, providing the fuel needed for a potential rebound. A rise in volume would likely support a recovery toward the $0.44-$0.45 zone, where XLM had previously faced rejection.
The Path Forward for Stellar (XLM)
Stellar’s price action remains in a critical zone. Holding above $0.35 is essential for any chance at recovery, while breaking through $0.40 would be a bullish signal. With oversold conditions and increased volume, XLM could rebound toward the $0.44-$0.45 range, but the bears are still a significant threat if momentum shifts. Traders and investors should closely monitor these levels for the next significant move.
Also Read: Stellar (XLM) Price Surge Predicted: Analysts Forecast 2,160% Growth with $11.1 Target
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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