- Stellar has been retested at $0.3 but is still being rejected after ten consecutive days.
- The $0.2 price zone may have a slight bullish response, but investors should be cautious.
Stellar [XLM] In the last 24 hour, it has lost 14.5%. It is after Bitcoin [BTC] The price of bitcoin fell below $74.5k just a few minutes before the press deadline as the stock markets around the world plunged following the shockwaves caused by the new tariffs. Altcoins traders should be cautious. Particularly since recent events made the trend that has been bearish for the last three months much more pronounced.
The bottom is not yet formed, so buyers should be patient rather than rush to purchase it. BTC Trends can be tracked to get a better understanding of the market.
Stellar drops below $0.2 after selling pressure increases once again
The trend remains severely negative. Moving averages of 20- and 50 period were both above price, indicating a bearish trend. MACD was once again diving downwards after it appeared to have made a move over the zero line.
It was the result of a consolidation phase in March around $0.25-$0.3, followed by sharp losses during April. CMF was below zero in March, and it has now dropped below -0.05. This indicates heavy capital flow out of Stellar’s market.
Stellar may suffer more losses due to the combination of momentum and pressure from sellers. Fibonacci levels for the November rally revealed that the level of 78.6% was $0.207.
The price of gold was just below the key support at press time. Watch out also for the long-term levels of $0.197 and $0.162.
Source: Coinglass
This heatmap of 1-month liquidations revealed that long liquidations were concentrated in the zone between $0.246 and $0.26.
These levels also aligned with local support from the first quarter of March. The price of XLM has dropped below $0.24, the liquidity cluster.
Source: Coinglass
XLM may be able to tell us more about its next moves if we take a closer look at local liquidity levels. A buildup of liquidity at $0.23 was an appealing target and hinted that if the price rose, a possible bearish move could occur.
The next magnet zone that you should be on the lookout for is between $0.255 and $0.265. The best traders should be careful and avoid buying the lowest price right away.
Disclaimer: All information provided is the opinion and solely of the author. The writer does not provide any financial or trading advice.
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Source: ambcrypto.com
