Following the mid-January drops that set the market on a new selling phase after a short recovery, XLM gathered momentum for three weeks but is now looking prime for a big drop due to 7% drops monthly. Stellar’s XLM has made some corrections in the past week but the price is still within a buying range as it remains neutral-bullish on the daily timeframe. Meanwhile, things are getting ugly on the hourly chart as the trend turned bearish. The price is now looking weak amid rising supply. The closest level for selling right now lies at $0.32 which was held as support last December. Whether this support will hold or not is yet unknown. But looking at the setup from a technical standpoint, the level is likely to break significantly as soon as the market tests it. If that happens, we can expect a huge drop to retest the $0.162 level that broke as resistance during the November 2024 surge. Such a fallout could lead to a major market reset before picking up again. Sustaining bullish momentum, it must stay above the December support to form a new bullish (double-bottom) pattern before bouncing back. A break above $0.64 should set the stage for another upward move daily. XLM’s Key Level To Watch Source: Tradingview Losing December’s $0.32 support could sink the price to a low of $0.27, followed by the $0.189 level. The lower level to consider for a broader correction is $0.115. It may even test the $0.1 level before resuming buying. The current drop was initiated from $0.51. If the bulls pushed back to reclaim this resistance level, the next line of interest would be $0.63. A cross above this level should set the market up for a new rally to $0.7. Key Resistance Levels: $0.51, $0.63, $0.7 Key Support Levels: $0.32, $0.27, $0.189 Spot Price: $0.387 Trend: Neutral-Bullish Volatility: Low Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: helintonfantin/ 123RF // Image Effects by Colorcinch
