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Stellar’s XLM has dropped by 11% in the past week as negative sentiment continues to permeate the wider cryptocurrency market.
As sellers take charge, the altcoin is experiencing increased pressure, raising the risk of drifting further away from the critical $0.50 threshold.
XLM Bears Drive Price Further Below Key Levels
On the daily chart, XLM’s double-digit decline has pushed its price beneath the 20-day exponential moving average (EMA). The 20-day EMA now acts as dynamic resistance above the token’s value at $0.4187, amplifying the market’s downward pressure.
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The 20-day EMA reflects an asset’s average price over the last 20 trading days, giving more significance to recent prices. When the price is above the 20-day EMA, it indicates short-term bullish momentum and suggests that buyers are in command.
Conversely, if the asset’s price falls below this level, it leads to heightened sell-side pressure and diminishing short-term support, making XLM susceptible to further declines in the upcoming days.
Additionally, XLM’s price has breached the Leading Span A of its Ichimoku Cloud and is trending lower towards the Leading Span B, reinforcing the notion of weakening accumulation.
The Ichimoku Cloud is a tool that tracks momentum in market trends, helping to identify potential support and resistance levels.
When the price falls below the Leading Span A of this indicator, it indicates that bearish forces are gaining strength, and a subsequent move towards Leading Span B raises the chances of a more significant downturn.
This trend indicates that XLM’s bearish outlook may continue unless it achieves a decisive bounce above the cloud.
XLM Descends Deeper into Bear Territory
These indicators reveal a market scenario where XLM buyers are increasingly sidelined, granting sellers an advantage. If bulls fail to take control above the Cloud, the altcoin is likely to remain in a downtrend.
In such a scenario, the price could slide toward $0.3717, where the Leading Span B continues to present dynamic support. Should this level break, XLM’s value could tumble to $0.3620.
Alternatively, the token’s value could reclaim and rise above the Leading Span B at $0.4236 if the bulls manage to regain control.
The post Stellar (XLM) Bears Strengthen Control as $0.50 Remains Out of Reach appeared first on BeInCrypto.
