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- Stellar (XLM) faces resistance at $0.33, with recovery unlikely unless it breaks this level.
- XLM remains above $0.24, but a drop below this support could cement a bearish trend.
- The looming Death Cross may lead to further selling pressure, signaling more declines for XLM.
Stellar (XLM) has been in a continuous bearish trend for the past three months and does not seem to break out of it. However, the cryptocurrency is still facing multiple resistances even after trying to stage a comeback. This level of $0.33 has remained more of a resistance area throughout the stated period. If XLM fails to break this level soon, it may lag again and a recovery may not be seen in the nearest future.
XLM’s Critical Support Level
Analyst Ali Martinez said that XLM is on the verge of a significant area of support. According to him, as long as XLM remains above $0.24, the asset can be considered bullish. If the price remains above this level, there could be some positive undertone attached to it in the market. To the contrary, further decline below $0.24 will cement the bearish trend.
At the time of writing, XLM is confined to the descending channel. It has support at $0.24 and it the resistance level lies at $0.33. The price is trapped in this horizontal channel and has been moving up and down with, in lower highs followed by lower lows manner. This means that the altcoin is still not in a solid position as perceived by most of its members.
Death Cross Signals Bearish Trend
A Death Cross is currently forming which is a major red flag for XLM. The Death Cross happens when the 50-day Exponential Moving Average falls below the 200-day Exponential Moving Average. This pattern is a bearish formation and can also be followed by further deterioration of the price. Even more concerning for XLM, the second Death Cross of this year 2024 could be imminent, and therefore lead to further selling pressure and higher decline.
Source: TradingView
As of now, XLM is being traded at $0.2681 mark which has shown a decline of 1.30% for the previous day. If the price remains below the $0.299, then there is a high probability that they will drop even lower. If support levels of $0.24 is broken, the price of XLM would be dragged down to $0.188 or slightly lesser. In particular, the Death Cross is under traders’ focus, as it might be followed by further sales in the near future.
