{"id":824774,"date":"2025-02-06T07:11:38","date_gmt":"2025-02-06T13:11:38","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/06\/xlm-at-risk-of-40-price-drop-bearish-pattern-sparks-sell-off-warnings\/"},"modified":"2025-02-06T07:11:38","modified_gmt":"2025-02-06T13:11:38","slug":"xlm-at-risk-of-40-price-drop-bearish-pattern-sparks-sell-off-warnings","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/06\/xlm-at-risk-of-40-price-drop-bearish-pattern-sparks-sell-off-warnings\/","title":{"rendered":"XLM at Risk of 40% Price Drop, Bearish Pattern Sparks Sell-Off Warnings"},"content":{"rendered":"
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\"XLM<\/figure>\n<\/div>\n
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In this market uncertainty, XLM, the native token of Stellar, appears bearish and is poised for a massive price decline. This bearish outlook is further supported by intraday traders, who seem to be strongly betting on short positions, as reported by the on-chain analytics firm CoinGlass.<\/p>\n

Traders\u2019 Strong Bets on Short Positions<\/strong><\/h2>\n

Today, February 6, 2024, the on-chain metric<\/a> XLM exchange liquidation map revealed that traders holding long positions are exhausted and currently over-leveraged at the $0.3057 level, with $2.26 million worth of long positions. Meanwhile, traders holding short positions are dominating, as they are over-leveraged at $0.355, with $5.25 million worth of short positions at this level.<\/p>\n

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Source: Coinglass<\/figcaption><\/figure>\n

However, these millions of dollars worth of positions will be liquidated if market sentiment shifts and the price moves in either direction. This on-chain data clearly shows that there is no power on the bull\u2019s side, and the bears are the ones leading the XLM.<\/p>\n

The potential reason behind this negative perception is the bearish price action and the current economic tensions<\/a> between the United States, Mexico, Canada, and China.<\/p>\n

XLM Technical Analysis and Upcoming Level\u00a0<\/strong><\/h2>\n

According to expert technical analysis, XLM has formed a bearish inverted cup and handle price action pattern on the daily time frame and is on the verge of a support or neckline breakdown.<\/p>\n

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Source: Trading View<\/figcaption><\/figure>\n

Based on the recent price action, if XLM fails to hold this level or breaches the neckline and closes a daily candle below the $0.32 level, there is a strong possibility it could drop by 40% to reach the $0.20 level in the future.<\/p>\n

Despite this bearish price action, the asset is still trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that XLM is in an uptrend.<\/p>\n

Current Price Momentum<\/strong><\/h3>\n

XLM is currently trading near $0.33 and has experienced a price decline of over 7.50% in the past 24 hours. However, during the same period, its trading volume dropped by 30%, indicating a fear of further price declines.<\/p>\n<\/div>\n

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\n Chandan Gupta<\/p>\n","protected":false},"excerpt":{"rendered":"

In this market uncertainty, XLM, the native token of Stellar, appears bearish and is poised for a massive price decline. This bearish outlook is further supported by intraday traders, who seem to be strongly betting on short positions, as reported by the on-chain analytics firm CoinGlass. Traders\u2019 Strong Bets on Short Positions Today, February 6<\/p>\n","protected":false},"author":1,"featured_media":824775,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25713,4759],"tags":[],"class_list":{"0":"post-824774","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bearish","8":"category-price"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/824774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=824774"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/824774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/824775"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=824774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=824774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=824774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}