Stellar Support Breakdown Triggers Analysis of Potential 32% XLM Price Plummet
Given the current uncertainties in the market, Stellar’s outlook has shifted towards a bearish trend, hinting at a significant decline in its price over the upcoming days.
On the 25th of February 2025, XLM experienced a notable 14% drop, breaching the critical support level of $0.31, known for its historical significance in price movements.
Following this substantial decrease within a day, XLM was seen trading close to the $0.279 mark.
During this period, trading volume surged by 85%, signifying increased engagement from traders and investors in comparison to previous days.
Stellar Price Forecast and Future Levels
Based on the technical analysis by CryptoCrypto, XLM’s recent breach of the crucial support at $0.31 has painted a bearish picture. A daily candle closure below this threshold partially confirms the bearish trend.
With the support breach and the confirmation of a bearish scenario, there is a strong likelihood for XLM to decline by 32%, potentially dropping to $0.19 in the near future.
Furthermore, the asset’s bearish momentum is reinforced by breaking below the 200 Exponential Moving Average (EMA) support on the daily chart.
Outflow of $7 million in XLM
Despite the prevailing bearish sentiment in the market and the continuous descent of XLM’s price, investors and long-term hodlers have been actively accumulating the coin, as per insights from on-chain analytics provider Coinglass.
Data reflecting spot inflow/outflow indicates that exchanges saw an outflow of $7.10 million in XLM over the past 48 hours.
Such outflows during a weak market phase could generate buying pressure and potentially drive the price upwards.
Short Bets Worth $3.50 million by Traders
Conversely, short-term traders are leveraging the current market sentiment by aligning their bets with the downwards movement of XLM’s price.
According to Coinglass data, traders endorsing short positions currently dominate the market, with long position bettors showing signs of exhaustion.
Presently, long-position traders have overleveraged themselves at $0.272, expecting the price to hold above this level, establishing long positions worth $802.5K.
Meanwhile, short-position traders are overleveraged at $0.306, anticipating XLM not to exceed this level and have accumulated short positions worth $3.42 million.
Considering these on-chain metrics alongside technical analysis, it seems that long-term investors and hodlers are capitalizing on the recent price drop, possibly implementing a “buy the dip” strategy.
In contrast, XLM traders seem to be influenced by market sentiment, using leveraged positions to place substantial bets on the downside.