Stellar’s Price Plunge: Will $0.27 Be the Lifebuoy or Just a Mirage? 💸

by
  • Oh dear, XLM has lost a staggering 11.1% of its value over the last week! 😱
  • Analyst whispers that a drop to $0.23 might be next if Stellar can’t cling to $0.27 like a lifebuoy!

Once upon a time, in the not-so-distant past, Stellar [XLM] reached a local high of $0.3344, basking in the glory of its fleeting success. But alas, like a soap bubble, it has now descended into a channel of despair, trading at a mere $0.2799 at the time of this lamentation.

In a dramatic twist, this represents a 4.26% decline in just 24 hours. On the weekly charts, our dear altcoin is down by 11.1%. What a rollercoaster ride! 🎢

This disheartening decline has left crypto analysts buzzing like bees in a flower garden, pondering the fate of this digital darling. One such analyst, the ever-astute Ali Martinez, hints at a potential plunge to $0.23. Oh, the suspense! 🕵️‍♂️

Martinez, in his sage wisdom, suggests that Stellar must hold the $0.27 level to avoid further losses. Should it slip below, the next support awaits at $0.23, like a dark cloud looming over a picnic.

In light of this ominous trend, we must scrutinize the charts as if they were the pages of a thrilling novel.

Is the altcoin set for further losses? Or is it just a bad hair day?

According to AMBCrypto’s analysis, Stellar is feeling the weight of strong downward pressure as bears take the reins of the market. 🐻

We can observe this bearishness as investors retreat like startled deer in the headlights.

Consider this – Stellar’s Open Interest has been on a downward spiral for six consecutive days. At press time, it languished at $38 million, down from $49 million. When Open Interest falls, it’s like a party where no one shows up – new investors are not opening positions, while the existing ones are making a hasty exit.

Moreover, the altcoin’s funding rate has slipped into negative territory once again. A slip into this zone means that even those brave enough to open positions are mostly betting on a fall. It’s like a game of musical chairs, but everyone is hoping the music stops at a lower price! 🎶

We can see this bearishness tightening its grip as Stellar’s RSI continues its downward waltz. Since making a bearish crossover five days ago, the RSI has plummeted to 48, while its MA has risen to 58. This could suggest a bearish bias, with sellers having a firm grip on the market.

These sellers have offloaded a staggering 82.62 million XLM tokens over the past 24 hours, according to Coinalyze data. A negative delta of -15.6 million XLM indicates that bears are indeed in control of the market now. 🐻

In simple terms, Stellar is experiencing a downward pressure akin to a lead balloon. If this trend continues, XLM may find itself in a deeper pit of despair. Therefore, if the bears keep their grip, the selling pressure will push the price further down, down, down.

A drop from its current rates will see XLM seeking support around $0.263. If that fails to hold, it will tumble to $0.252. In the short term, Martinez’s projected drop to $0.23 may be unlikely unless this decline becomes a sustained affair.

For a trend reversal, however, XLM must cling to the $0.27 level like a lifebuoy in a stormy sea.

Read More

2025-05-20 04:12