Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
With the asset currently trading below a significant resistance level, Stellar is finding it difficult to sustain momentum following a botched recovery attempt. Since XLM is still in a consolidation phase without a distinct breakout, the price action points to investor indecision. After several attempts to rise, XLM is currently trading at about $0.39, indicating weakness.
Unbroken, the crucial resistance level of $0.42 serves as a formidable obstacle for buyers. Located at approximately $0.36, the 50 EMA has been offering support on the downside but is currently undergoing another test. The next important support to keep an eye on if the price drops below this level is at $0.28, where the 200 EMA is presently located.
Following a significant price spike in late 2024, XLM has struggled to maintain its bullish momentum. The most recent rejection at $0.42 indicates that sellers maintain control and are impeding a legitimate breakout. At the same time, the RSI is close to 50, indicating neutral momentum — neither overbought nor oversold.
Related
Additionally, trading volume has been dropping, which might suggest that there is not much interest in purchasing at the current price points. If XLM is be able to recover $0.42, it might lead to another rally in the direction of $0.48, the next significant resistance level. Further declines toward $0.28 may be possible, though, if the asset is unable to hold above the 50 EMA at $0.36.
A decline below this mark would signal a more serious correction and might wipe out a sizable amount of XLM’s prior gains. Whether or not it does, buyers will intervene at crucial support levels, and the general mood of the market will now determine Stellar’s price movement. The next course of the asset will be decided by a clear move above or below these price levels.
Source: https://u.today/stellar-xlm-failed-to-break-key-resistance-price-levels-to-watch-next