Despite the recent decline in Stellar (XLM) prices, new research indicates positive changes in community sentiment, which might signal improvement ahead.
Current Market Situation of XLM
The price of Stellar's main asset (XLM) fell to $0.249, reflecting a 7% decrease in the past 24 hours. Since mid-May, XLM has lost over a quarter of its market value and is currently trading within a falling wedge pattern, breaking the crucial support level of $0.26. The price drop is attributed to increasing geopolitical uncertainties and overall market apprehension.
Changing Social Sentiment
Recent data suggests that negative sentiment within the XLM community is gradually being replaced by positive anticipation. According to Santiment, the total weighted sentiment for XLM improved from -0.775 to +0.192 this week. Particularly on June 17th, positive social media messages reached 11.31, significantly surpassing the 0.81 negative messages. These figures indicate notable optimism in discussions surrounding the altcoin.
Factors and Risks Affecting Price
One of the major hurdles for an XLM price increase is liquidity. The current liquidity heatmap shows that the altcoin's price is situated at the lower end of the liquidity pool. Further downward breaks in price could lead to a long squeeze, pulling XLM to lower levels. However, the potential for an improvement in overall market conditions exists. Reducing geopolitical tensions could offer support for XLM around the $0.25 level, providing a chance for price recovery.
Thus, despite the current decline in Stellar (XLM) prices, the positive changes in community sentiment might indicate potential recovery in the future. Monitoring liquidity and overall market conditions will be crucial for further forecasts.
