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Stellar XLM Price on the Verge of a Breakdown, Should You Sell or Hold?
The price of Stellar (XLM) has taken a drastic turn, plummeting 10.84% in the last 24 hours to trade at $0.4168. This sudden drop comes after the cryptocurrency had previously rallied over 12% in seven days and was eyeing a golden cross. Amidst this chaos, traders are left questioning whether they should hold or sell their XLM.
One of the primary concerns is the fact that Stellar’s price has broken below key technical and on-chain support levels. This sudden correction has also led to an increase in trading volume, with a staggering 71.56% surge to $1.02 billion. It appears that the market pressure and large-scale long liquidations are heavily influencing XLM’s price action.
From a technical standpoint, Stellar’s structure has weakened significantly after failing to hold above the 23.6% Fibonacci retracement at $0.44 and the 30-day EMA around $0.41. As of now, XLM is trading below its lower Bollinger Band, accompanied by an RSI that has plummeted to an oversold zone at 28.14.
In this precarious situation, it becomes essential for investors to carefully analyze their positions. The critical support level currently lies at $0.40, and a breakdown of this price could potentially trigger a drop to the 61.8% Fibonacci retracement from July’s rally, which is situated around $0.3171.
On the other hand, in order to reverse the downtrend, bulls must reclaim the XLM price at both $0.44 and $0.47.
Source: coinpedia.org
