Stellar Lumens Faces Bearish Trend with Experts Predicting 32% Market Correction
As uncertainty looms over the market, Stellar’s digital asset – known as XLM – is showing signs of a bearish trend, hinting at a significant price downturn in the near future.
On February 25, 2025, XLM experienced a notable 14% drop, failing to maintain its critical support level at $0.31, a level historically known for triggering price reversals.
In the last 24 hours, XLM has been trading around the $0.279 mark, reflecting substantial downward movement.
Simultaneously, trading volume has surged by 85%, indicating increased trader and investor activity compared to previous days.
Stellar Lumens Price Analysis and Future Prospects
Following a breach of the crucial $0.31 support level, as per CryptoCrypto’s technical analysis, XLM appears to be on a downward trajectory. A daily close below this level somewhat confirms the bearish stance.
Given the recent breakdown of support and confirmation of a bearish trend, there is a high likelihood that XLM might see a 32% decline, potentially dropping to the $0.19 level in the coming days.
The bearish sentiment is reinforced by breaching the 200 Exponential Moving Average (EMA) support on the daily timeframe.
$7 Million Worth of XLM Exodus
Despite prevailing bearish sentiments and ongoing price declines, data from Coinglass, an on-chain analytics firm, reveals that investors and long-term holders are accumulating XLM holdings.
Recent data on spot inflow/outflow indicates that over the past 48 hours, exchanges have witnessed an outflow of $7.10 million worth of XLM. Such outflows amid market weakness may generate buying pressure, potentially driving prices upwards.
Traders’ Short Position at $3.50 Million
Amid the current market climate, intraday traders are capitalizing on the situation by engaging in short positions, aligning with XLM’s downward price movement.
Coinglass data highlights a dominance of short positions, with long positions appearing to be losing strength. Traders betting on the long side are currently overleveraged at $0.272, staking $802.5K in long positions.
On the other hand, those betting on the short side are overleveraging at $0.306 with $3.42 million in short positions, believing XLM will not surpass this level.
By combining on-chain metrics with technical analysis, it seems that long-term investors view the price drop as a buying opportunity, while traders are leveraging short positions to align with market sentiments.