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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 currently under attack from bears in the market, and recent data suggests that it may be on the cusp of a significant drop. At the time of writing, traders are over-leveraged at $0.342 on the lower side and $0.373 on the upper side.
On-chain metrics have revealed significant inflows of $3.9 million worth of XLM into exchanges, indicating potential selling pressure. This data is supported by Coinglass’s analytics, which suggests that traders are unwilling to build new positions due to prevailing market fear.
XLM has formed a descending triangle price action pattern on the daily timeframe and appears to be breaching its support area. The asset has tested the $0.334-support level three times this month, with each test weakening the support further. As such, if XLM fails to hold onto this level and closes a daily candle below $0.325, there is a strong possibility that it could drop by as much as 30%. This potential dip could potentially see XLM fall as low as $0.225 in the future.
The article concludes that Stellar’s native token XLM may be at risk of falling 30% due to its current price action and on-chain metrics suggesting selling pressure.
Source: ambcrypto.com
