news 
XLM Outlook: Bearish Signals Dominate, Yet Traders Eye Gains
The recent price action of Stellar Lumens (XLM) has been marked by bearish signals, with the cryptocurrency struggling to break past a key resistance level at $0.3. Despite this grim outlook, traders are still holding out hope for potential gains.
The 61.8% Fibonacci retracement level, which had previously served as support, has turned into a formidable resistance barrier. Bulls have attempted to push the price higher, but sellers continue to block progress, resulting in a sharp decline of approximately 19%. The $0.3 mark is crucial for XLM’s momentum shift; without reclaiming this level, another drop remains likely.
While bearish pressure remains strong, with the daily RSI staying below 40, indicators suggest that large sell-offs have not occurred. This creates a window for potential rebound if Bitcoin reverses its losses. The OBV, which has not declined, indicates that selling pressure lacks conviction.
Liquidation zones offer a glimmer of hope for traders looking to capitalize on gains. A strong cluster of liquidation levels lies between $0.303 and $0.31, potentially attracting price movement before another drop. More significantly, the monthly heatmap reveals two major liquidity targets at $0.35 and $0.37, which could accelerate price action if XLM flips $0.3 into support.
As traders weigh their options, it’s essential to note that resistance remains firm but selling pressure lacks conviction. Market uncertainty continues to plague the space, leading to a lack of trading volume. For now, XLM is at a critical crossroads, with a decisive breakout or rejection needed to confirm the bearish trend.
In conclusion, while bearish signals do dominate the current outlook for Stellar Lumens (XLM), traders remain hopeful that key resistance can be overcome and allow for potential gains.
Source: https://cryptonewsland.com/bearish-signals-dominate/
