Stellar [XLM] Battles for $0.27 – The Make-or-Break Price Wall for the Altcoin

Stellar’s XLM dances on a knife’s edge as traders eye the $0.27 level—a psychological and technical pivot that could dictate its next major move.

Why $0.27 matters: Flip it to support, and bulls might fuel a rally. Lose it, and the altcoin risks another leg down in this merciless crypto casino.

Meanwhile, Wall Street ’experts’ still can’t decide if blockchain is a revolution or just a fancy spreadsheet.

Source: X

In his analysis, Martinez noted that Stellar could face a strong price correction as bearish momentum builds. According to him, XLM must hold the $0.27-level to avoid further losses. A breach below this level will see the altcoin find the next support around $0.23.

In light of this worrying trend, it’s important to assess and determine what XLM’s charts seemed to suggest.

Is the altcoin set for further losses?

According to AMBCrypto’s analysis, Stellar has been seeing strong downward pressure as bears take hold of the market.

Source: Santiment

We can see this bearishness as investors take a step back in the market.

Consider this – Stellar’s Open Interest aggregated by exchanges has declined for 6 consecutive days. At press time, the altcoin’s Open Interest sat at $38 million – A decline from $49 million. When Open Interest falls, it means that new investors are not opening new positions while existing ones are exiting the market.

Source: Santiment

Additionally, looking at the altcoin’s funding rate aggregated revealed that it declined into negative territory again. A slip into this zone means that even those opening positions as Open Interest declines have been mostly going short. Thus, a majority of market participants are betting on the price to fall – A sign of strong bearish sentiments.

We can see this bearishness taking hold of the market as Staller’s RSI has continued to decline on the charts. Since making a bearish crossover 5 days ago, the RSI has dropped to 48, with its MA rising to 58. This could allude to a bearish bias, with sellers having strong control of the market.

Source: Tradingview

These sellers have offloaded 82.62 million XLM tokens over the past 24 hours, as per Coinalyze data. A negative delta of -15.6 million XLM meant that bears are in control of the market now.

Simply put, Stellar is seeing strong downward pressure with bears dominating the market. A continuation of the prevailing trend will position XLM to register more losses. Therefore, if the bears continue to dominate the market, the selling pressure will push the price further down.

A drop on the altcoin’s price charts from its press time rates will see XLM find support around $0.263. If this fails to hold, further decline will send XLM to $0.252. In the short term, a drop to $0.23 projected by Martinez may be unlikely unless its’s a sustained decline.

For a trend reversal though, XLM must hold above $0.27.