The situation surrounding Stellar (XLM) has shifted following the loss of the 10-day simple moving average, which previously served as support. This event has brought new risks to the market.
Loss of the 10-Day SMA
After rallying from below $0.30 to over $0.50 in early July, XLM showed strong momentum. However, support from the 10-day SMA was lost over the weekend amid increased trading volume, signaling a potential rise in bearish pressure.
Key Levels and Short-Term Risks
With the 10-day SMA flipped to resistance, the immediate downside target lies at $0.42. If this level fails to hold, next areas of support are at $0.38 and $0.34. Technical indicators further validate the caution, as the Relative Strength Index (RSI) hovers near oversold levels.
Long-Term Structure Still Intact
Despite short-term risks, Stellar's long-term structure remains bullish, trading above both its 50-day and 200-day SMAs, indicating deeper support at approximately $0.32 and $0.31 respectively.
In the current circumstances, Stellar (XLM) stands at a crucial crossroads. Its fate will be determined by the ability of bulls to reclaim lost support. While the pressure remains downward, a possible recovery could swiftly swing the market dynamics.
