Stellar (XLM) Short-Term Price Warning Issued: Details

The crypto market reversed course in the early Monday trading session after Sunday’s rise, with nearly all major cryptocurrencies, including Stellar (XLM), trading in the red. Bitcoin rose toward its all-time high mark, reaching $107,137 early Monday. The lead crypto asset rose above $106,000 on Sunday for the first time since January, while other top coins showed even larger daily gains.

Stellar (XLM) also benefited from the rise, reaching highs of $0.297 on Sunday after a four-day dip, before falling further early Monday.

The market action early Monday caught bulls and bears off guard. The unexpected price fluctuation wiped out over $465 million in long positions and $203 million in shorts, totaling $669 million across various crypto assets, per CoinGlass data.

At press time, Stellar (XLM) was down 3.49% in the last 24 hours to $0.2814 and 10.87% weekly. Stellar’s 24-hour trading volume is increasing as traders seek to profit from market volatility, up 88.83% to $270 million per CoinMarketCap data.

XLM faces short-term risk

As the cryptocurrency market experiences selling pressure, Stellar (XLM) is approaching a major support test, with the next move potentially decisive.

According to crypto analyst Ali, XLM must hold the $0.27 level to avoid a steeper correction. A break below this key support could trigger a potential 14% decline, dragging the price down to around $0.23.

“Stellar (XLM) needs to hold $0.27 to avoid a 14% correction to $0.23,” Ali warned in a recent post on X.

Now trading at $0.281, XLM touched intraday lows of $0.276 in the early Monday session, indicating that bulls are actively defending the $0.27 range to forestall further drops. If this is sustained, XLM might aim to retest the daily SMA 200 at $0.323 ahead of the May 12 high of $0.334.

On the other hand, further selling pressure might target a drop toward the $0.266 level at the daily SMA 50 ahead of the $0.23 level.

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