Stellar’s native token XLM, often seen as a competitor to XRP, is facing a potential significant price drop as it shows a bearish pattern on the four-hour chart. While the asset is currently holding above a critical level, the prevailing bearish sentiment and continuous price decreases have pushed it to a crucial make-or-break point.
XLM Technical Analysis and Future Level
Expert technical analysis indicates that XLM has formed a bearish head and shoulders pattern, with the current price sitting at the neckline. If the asset breaches this level and closes a four-hour candle below $0.265, there is a high likelihood of a 30% drop to reach $0.19 in the near future.
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Despite trading below the 200 Exponential Moving Average (EMA) on both daily and four-hour charts, indicating a downtrend in the short and long term, XLM is currently priced near $0.275. It has experienced a 4.5% drop in the last 24 hours, with trading volume decreasing by 35% due to unexpected market movements, signaling reduced participation from traders and investors.
Current Price Momentum
Traders are heavily leveraged at $0.27 on the lower end and $0.285 on the upper end, according to data from on-chain analytics firm Coinglass. They have built long positions worth $500K at the lower level and $2 million at the upper level, suggesting a bearish dominance and a potential short-term decline in the asset’s value.
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