- Stellar retested $0.3 as resistance, but faced rejection over the last ten days
- Retest of the $0.2 demand zone might have a minor bullish reaction, but investors must remain cautious
Stellar [XLM] has faced 14.5% losses in the last 24 hours. This, after Bitcoin [BTC] fell to $74.5k a few hours before press time as stock markets worldwide plunged in the aftermath of the tariff shockwaves. Altcoin traders need to be careful though. Especially since the bearish trend of the past three months got much stronger due to recent events.
Buyers can be patient instead of trying to buy the bottom right away since there are no clues yet that a bottom has even formed. BTC trends can also be monitored for clues about the wider market.
Stellar to fall below $0.2 as selling pressure intensifies once more
Source: XLM/USDT on TradingView
The 1-day trend remained severely bearish. The 20 and 50-period moving averages were above the price and showed that bearish momentum was dominant. The MACD was diving lower once again after appearing to make a move above the zero line.
This was a result of the consolidation phase around $0.25-$0.3 in March, which was followed by sharp losses in April. The CMF has been below zero since March and has once more dived well below -0.05 to indicate heavy capital flows out of the Stellar market.
Together, the momentum and selling pressure meant that further losses may be likely for Stellar. The Fibonacci retracement levels based on November’s rally showed that the 78.6% level was at $0.207.
At press time, the price was just below this key support level. The $0.197 and $0.162 levels were also long-term support levels to watch out for.
Source: Coinglass
The 1-month liquidation heatmap revealed that the $0.246-$0.26 zone has been filled with long liquidations.
They also coincided with the local support levels from the first half of March. The latest price plunge took XLM’s price well below the $0.24 liquidity cluster.
Source: Coinglass
A closer look at the local liquidation levels gave some clues about XLM’s next move. The build-up of liquidity around $0.23 presented an attractive target, and the possibility of a bearish reversal in case of a price bounce.
Beyond that, the $0.255-$0.265 zone is the next magnetic zone to watch out for. Stellar traders need to be cautious and not try to buy the bottom right away.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
