Stellar’s XLM has plummeted 11% over the past week as bearish sentiment spreads across the broader crypto market.
With sellers regaining control, the altcoin faces mounting pressure and risks falling further from the desired $0.50 level.
XLM Bears Push Price Deeper Below Key Levels
On a daily chart, XLM’s double-digit dip has pushed its price below the 20-day exponential moving average (EMA). The 20-day EMA now forms dynamic resistance above the token’s price at $0.4187, increasing the market’s downward pressure.
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The 20-day EMA measures an asset’s average price over the past 20 trading days, giving weight to recent prices. When price trades above the 20-day EMA, it signals short-term bullish momentum and suggests buyers are in control.
On the other hand, when an asset’s price falls under this level, the market experiences increased sell-side pressure and weakening short-term support. This puts XLM at risk of falling further over the next few days.
Further, XLM’s price has broken below the Leading Span A of its Ichimoku Cloud and is trending lower towards the Leading Span B, confirming the weakening accumulation.
The Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels.
When an asset’s price falls beneath the Leading Span A of this indicator, it signals that bearish forces are gaining strength. A subsequent move toward the Leading Span B raises the likelihood of a deeper downside.
Therefore, this trend suggests that XLM’s bearish trajectory could persist unless it manages a decisive rebound above the cloud.
XLM Slides Deeper Into Bear Territory
These indicators highlight a market environment where XLM buyers are increasingly sidelined, giving sellers the upper hand. Unless bulls reclaim control above the Cloud, the altcoin will likely remain in a decline.
In this case, its price could fall toward $0.3717, where the Leading Span B still forms dynamic support. If this level fails to hold, XLM’s value could drop to $0.3620.
On the other hand, the token’s price could regain and climb above the Leading Span B at $0.4236 if the bulls regain control.
The post Stellar (XLM) Bears Strengthen Control as $0.50 Remains Out of Reach appeared first on BeInCrypto.
