Key Insights:
- With an 18% price dip in recent days, the XLM price currently stands at a make-or-break level.
- On-chain metrics reveal that exchanges have witnessed a significant outflow of $5.52 million worth of XLM tokens.
- Traders are currently over-leveraged at $0.276 on the lower side and $0.3116 on the upper side.
Amid market uncertainty, the XLM price has fallen significantly and failed to sustain its recent bullish breakout. According to the daily chart, the asset has recorded a price decline of over 17%, creating a make-or-break situation.
Current Price Momentum
As of writing, XLM is trading near $0.287 and has registered a modest price dip of 0.35% over the past 24 hours. During the same period, due to fading momentum and the failure to hold a bullish pattern, traders and investors seem hesitant to participate, resulting in a 25% drop in trading volume compared to the previous day.
Despite the lower participation from traders and investors, a well-followed crypto expert recently made a post on X (formerly Twitter), noting that XLM has the potential to hit $0.691 and $1.29 in the coming days.
XLM Price Action and Technical Analysis
According to expert technical analysis, the XLM price appears bearish and is poised to continue its correction in the coming days.
Earlier, the asset broke out of a bullish inverted head-and-shoulders pattern and rallied, but it failed to hold a key level, making it a clear fakeout, further reinforcing its bearish outlook.
The daily chart reveals that the XLM price has been in a continuous downtrend over the past few days, recording an 18% decline. During this fall, the asset has consistently faced resistance from the descending trendline and is currently trading at that level, indicating a potential price decline ahead.
XLM Price Prediction
Based on recent price action and historical patterns, if the current market sentiment remains unchanged, history may repeat itself, and the price could reach the $0.279 level.
On the other hand, if the sentiment shifts and the XLM price breaks above the trendline, there is a strong possibility that the asset could rally by 30% to reach the $0.37 level in the coming days.
As of now, XLM’s Relative Strength Index (RSI) stands at 51, indicating that the asset is in neutral territory, neither oversold nor overbought. This technical indicator suggests that the price momentum, whether bullish or bearish, will depend on market sentiment and traders’ outlook.
Looking at the current market sentiment, it appears that traders and investors hold differing views, with some seen accumulating while others are betting on the bearish side, as reported by the on-chain analytics firm CoinGlass.
$5.50 Million Worth of XLM Outflow
Data from spot inflow/outflow reveals that exchanges have witnessed a significant outflow of $5.52 million worth of XLM tokens over the past seven days.
This substantial outflow occurred during XLM’s continuous price decline and currently indicates potential accumulation, which could lead to buying pressure and upward momentum.
However, traders are currently over-leveraged at $0.276 on the lower side (support) and $0.3116 on the upper side (resistance), having built $1.90 million worth of long positions and $13.35 million worth of short positions at these levels.
When combining these on-chain metrics, it appears that sentiment is mixed and will likely remain unchanged until a major rally occurs in the market.