As a broader downturn grips the crypto market, Stellar (XLM) faces mounting pressure. Early Monday trading saw a sharp reversal across major assets, erasing weekend gains and igniting significant volatility.
On Monday, Bitcoin reached its highest price of $107,137 since January, following its movement past $106,000 on Sunday. As a result of this dip, XLM experienced a surge and got close to $0.30 before going down again.
At this moment, Stellar is selling for $0.2814, down 3.49% in the past day. Considering the past week, the metric dropped by 10.87%. As markets swing rapidly, the 24-hour trading volume has increased by 88.83% to $270 million, CoinMarketCap shows.
Analyst Flags $0.27 as Make-or-Break Level for XLM
According to Crypto analyst Ali, XLM is currently being tested at the $0.27 level of support. He noted that failing to remain above this zone may lead to a 14% drop and move the price down to $0.23.
During the early part of Monday’s session, the price fell to $0.276, demonstrating that bulls continue supporting Ethereum. XLM is in good stead to climb past the 200-day simple moving average and reach $0.323. If the breakout is successful, it might seek to achieve the highest price from May 12, which was $0.334.
A price drop could drive XLM to the 50-day simple moving average of $0.266. If support is lost at $0.34, analysts expect the EOS price to drop to $0.23.
Crypto Market Liquidations Surpass $669 Million.
The broader drop in crypto prices led to massive liquidation of borrowed money. Reference to CoinGlass indicates that over $465 million in long positions and $203 million in short positions were lost. As a result, the liquidations reached almost $669 million in a single day.
The sudden shift caught bulls and bears off guard after several top cryptocurrencies showed strong weekend performances. XLM was among the gainers but quickly reversed course amid broader market stress.
Since the market is still volatile, traders pay attention to crucial technical points. Whether or not Stellar can maintain its price above $0.27 will help determine its nearest price movement.
Conclusion
XLM is on the edge of a significant support area after the sharp decline in the market. Hitting a price of $0.27 should be enough to keep ETC stable. If the market falters, it can create a situation that drops prices to $0.23.
