Analyst Warns XLM Price Today Could Be Heading for a Breakdown

The post Analyst Warns XLM Price Today Could Be Heading for a Breakdown appeared first on Coinpedia Fintech News

The XLM price today is facing renewed bearish pressure as the asset slips below the key short-term EMA band, moving its price action into bearish territory after multiple failed attempts to reclaim the $0.50 resistance.

Despite prior bullish momentum, Stellar now finds itself stuck in a bleeding consolidation. Now the analyst highlights key support levels that may determine its next move on the XLM price chart.

XLM Price Faces Repeated Rejection at $0.50

The XLM price in August has struggled to break above the $0.50 resistance mark, a level that has turned into a strong resistance zone in the short-term.

As evident on chart, its each attempt to push higher has been met with bears selling pressure, keeping XLM crypto range-bound.

Recently, on the daily chart, the XLM crypto slipped 6% intraday pushing below the 20-day EMA, shifting market sentiment from bullish to bearish in near short-term.

This breakdown is reflecting the growing caution among investors as the XLM price USD shows multiple signs of weakness.

Until buyers can reclaim $0.50 level with conviction, the XLM price forecast suggests that the path ahead may remain choppy with volatility dominating short-term movements.

Therefore, currently on the chart, the two crucial levels will guide the next move per an analyst. Per his post, the immediate safety net sits at $0.33, which previously acted as a breakout point in July.

If XLM holds this level, it may attempt another recovery run to retest $0.50 in order to aim higher targets. However, if the asset breaks lower, the next critical zone lies at $0.22, a historically reliable support.

Volatility Fueled by Trader Uncertainty In XLM Crypto

Adding to the turbulence, the derivatives data on Coinglass suggest that the funding rates for XLM crypto have often flipped between positive and negative in recent weeks.

This shift signals a mindset that the short-term traders are experiencing an indecision phase, and that’s why they seem to be actively attempting to profit from sudden bursts of momentum rather than holding long-term conviction.

Consequently, the XLM price prediction remains clouded by uncertainty, with speculation driving short-lived moves.