news 
Explaining why Stellar’s [XLM] price may be at the risk of a potential 30% dip
At press time, Stellar’s native token XLM is on shaky ground, with its price action suggesting a possible decline of up to 30%. The altcoin has been trading in a descending triangle pattern on the daily timeframe and appears to be losing support. This technical analysis raises concerns about XLM’s ability to maintain its current level.
A closer look at XLM’s historical data reveals that it is forming a descending triangle price action pattern, which could lead to further decline. The altcoin has already tested the $0.334-support level three times this month, and each time it has failed to bounce back. This weakness in support levels increases the risk of a significant price drop.
The latest on-chain metrics suggest that long-term holders are selling their assets, causing an inflow of $3.9 million worth of XLM into exchanges. This indicates that market participants believe the current bearish trend will persist, and prices may drop further.
In addition to this, traders have been liquidating their positions over the past 24 hours, resulting in a significant decrease in Open Interest. Over-leveraged traders are currently building long positions at $0.342 on the lower side, which could lead to a sharp decline if the price falls below this level. Conversely, short sellers have built positions worth $5.65 million at $0.373 on the upper side.
Currently, XLM is trading between these two levels, and its failure to hold the $0.334-support could lead to a potential 30% dip in the coming days.
Source: ambcrypto.com
