Stellar (XLM) has broken the critical support at $0.31 and, according to technical analysis, could drop by 32% to $0.19. Despite the downtrend, exchanges have recorded an outflow of $7.1 million in XLM, indicating buying interest. At the same time, traders are increasingly betting on falling prices and have built up short positions worth $3.42 million.
Stellar Loses Key Support
On February 25, 2025, the price of Stellar (XLM) dropped by 14% and fell below the crucial support at $0.31. This level had often served as a turning point for the price in the past. After the decline, XLM was trading at $0.279. At the same time, trading volume increased by 85%, indicating heightened market activity.
Technical Analysis: Further Decline Possible
According to technical analysis, XLM is in a clear downtrend. The break of the $0.31 support and the closing price below this level confirm the negative market sentiment. If the trend continues, XLM could fall to $0.19 in the coming days – a 32% drop. Additionally, the price has fallen below the 200-day Exponential Moving Average (EMA), reinforcing the bearish tendency.
$7 Million in XLM Withdrawn from Exchanges
Despite the price decline, on-chain data shows that investors are accumulating XLM. According to the analytics platform Coinglass, XLM worth $7.1 million was withdrawn from exchanges within 48 hours. Such outflows can indicate increasing demand and potential buying pressure, which could stabilize the price in the long term.
While long-term investors are buying XLM, short-term traders are betting on falling prices. According to Coinglass, traders have opened short positions worth $3.42 million at $0.306. This suggests that many market participants do not expect a quick recovery. At the same time, long positions at $0.272 are highly leveraged, indicating that some traders are betting on stabilization.
Our Assessment
Stellar (XLM) is under strong selling pressure after breaking the critical support at $0.31. Technical indicators suggest a possible decline to $0.19. However, exchange outflows indicate that some investors see the current weakness as a buying opportunity. In the short term, however, short positions dominate the market, which could amplify the downtrend. Those investing in XLM should closely monitor price movements and market sentiment.
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