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Explaining why Stellar’s [XLM] price may be at the risk of a potential 30% dip
Stellar’s native token XLM is on the verge of a significant price drop, with bearish on-chain metrics and technical analysis supporting this possibility. As the market continues to experience uncertainty, it appears that XLM is not immune to the trend.
At the moment, traders are over-leveraged at $0.342 on the lower side and $0.373 on the upper side, indicating a high level of selling pressure. The recent price action suggests that the altcoin may be at risk of falling by 30% in the coming days.
One crucial factor supporting this bearish outlook is Stellar’s price action forming a descending triangle pattern on its daily chart. This formation has previously resulted in significant downturns, and it appears that XLM is poised to follow suit. The asset has also failed to maintain support at $0.334 multiple times this month, which adds credence to the bearish analysis.
Furthermore, recent inflows of $3.9 million worth of XLM into exchanges may indicate a potential selling wave from long-term holders. This metric, provided by Coinglass, highlights a critical level of supply pressure that has resulted in an increased risk of price decline.
Lastly, Open Interest dropped by 4.5% over the past day, suggesting traders are unwilling to build new positions due to ongoing market fear. This reluctance is likely stemming from concerns related to current market conditions and the asset’s uncertain future.
In conclusion, Stellar’s XLM has been displaying a series of bearish signals that could lead to a significant 30% drop in price.
Source: ambcrypto.com
