Stellar (XLM) at Risk of Crash After Losing Key 10-Day Support
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Technical Indicators Point to Bearish Shift
The bearish sentiment is further reinforced by several key technical indicators. The candle that broke the 10-day SMA closed with notably higher selling volume compared to previous sessions, indicating increased selling pressure. Chart analyst Ali Martinez underscored the bearish implications of XLM trading below this moving average.
Adding to the concerns, the Bull-Bear Power (BBP) indicator has turned negative, registering a value of -0.0182, with the formation of red bars signaling that sellers are gaining control and market momentum has cooled. If the BBP continues to remain below the zero line, it could foreshadow sustained downward pressure on XLM's price.
Critical Price Levels to Watch
As of press time, XLM is trading at $0.43, having experienced an almost 6% decline on the day and an approximate 8% drop over the past seven days. While some analysts, such as Javon Marks, maintain an optimistic outlook for substantial upside if key resistance levels are overcome, others, like Peter Brandt, advise caution. Brandt emphasizes that XLM must hold above its April low of approximately $0.22 and decisively close above $1 to avoid remaining trapped in a prolonged range-bound movement. The price zone between $0.42 and $0.45 is identified as a critical decision point; a strong push above $0.45, backed by significant volume, could propel XLM back towards $0.50, whereas failure to do so might lead to further selling pressure.
