XLM, the native cryptocurrency of Stellar, is currently in a volatile phase, showing significant fluctuations in market value. In the past 24 hours, it has decreased by 7%, raising concerns among investors.
Current Market Performance of XLM
As it stands, XLM is trading at $0.249, which reflects a significant decrease of 7% within a day and over 25% since mid-May. The breach below the critical support level at $0.26 highlights the geopolitical risks affecting XLM's trajectory.
Shifts in Community Sentiment
A shift in sentiment is being observed within the XLM community. Negative outlooks are fading, as highlighted by data from Santiment, showing an increase in sentiment from -0.775 to +0.192. On June 17, the stark contrast between positive (11.31) and negative (0.81) social media mentions indicates growing optimism among users of this cryptocurrency.
Liquidity and its Impact on Forecast
Liquidity remains a key concern hampering XLM's road to recovery. Positioned at the lower edge of its liquidity pool, any further decline may trigger a long squeeze, potentially inducing a more significant price drop. However, easing geopolitical tensions, particularly following Donald Trump's ultimatum to Iran, might favorably impact the market and create conditions for XLM's recovery.
XLM's situation is encapsulated by several critical points, including current market indicators and shifts in sentiment. Monitoring liquidity and the development of partnerships will be crucial for XLM's future market behavior in the coming weeks.
