Stellar (XLM) is currently facing a bearish outlook due to a double-top price pattern breakdown and its position below the 200 Exponential Moving Average (EMA). This combination suggests a potential price decline of 12% to $0.083. However, a daily candle close below $0.0915 is crucial to confirm this downward trend.
Liquidation Levels and Market Sentiment
On-chain data from CoinGlass reveals that significant liquidation levels exist near $0.091 and $0.0948. Traders are heavily leveraged at these levels, and a market sentiment shift could trigger liquidations worth hundreds of thousands of dollars.
On-Chain Metrics and Price Analysis
Despite the recent breakdown, CoinGlass’s exchange liquidation map suggests that sellers have been less dominant, hinting at a possible price reversal. Additionally, the positive OI-weighted funding rate indicates a bullish market sentiment for XLM.
Conclusion
While the overall outlook for XLM is currently bearish, the price could reverse if it manages to close a daily candle above $0.0915. Traders should closely monitor the market sentiment and liquidation levels to make informed decisions.