Price Analysis
  • Chandan Gupta
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    Chandan Gupta is a crypto analyst and news writer at CoinPedia. He specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Chandan simplifies complex concepts in technical and on-chain analysis, making them easy to understand. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space

    • 2 minutes read

    XLM Price Crash Incoming? Bearish Pattern Spotted

    Story Highlights
    • XLM price could decline by 15% to reach the $0.23 level if it falls below the $0.288 level.

    • Traders are currently over-leveraged at $0.305 on the upper side and $0.286 on the lower side.

    In the ongoing market uncertainty, Stellar’s native token, XLM, appears bearish and is poised for a price decline due to the bearish price action it has formed on the four-hour timeframe. At the beginning of March 2025, XLM experienced impressive upside momentum, but it later formed a bearish rising wedge pattern.

    XLM Technical Analysis and Upcoming Levels 

    According to expert technical analysis, the asset is currently experiencing a price decline and is at a crucial support level. Based on recent price action and historical patterns, if XLM fails to hold the $0.288 level and closes a 4-hour candle below it, the price could decline by 15% to reach the $0.23 level in the coming days.

    In addition to this bearish pattern, XLM’s price began falling after hitting a descending trendline with a strong history of price reversals. However, the asset has formed a bearish engulfing candlestick pattern, which is pushing XLM’s price lower.

    Source: Trading View

    Current Price Momentum

    At press time, XLM is trading near $0.288 and has recorded a 2% price drop in the past 24 hours. Despite the decline, its trading volume has spiked by 25%, indicating increased participation from traders and investors compared to previous days.

    Bearish On-Chain Metrics 

    This bearish price action has been further reinforced by recent activity from whales and long-term holders, as reported by the on-chain analytics firm Coinglass.

    $1.40 Million Worth of XLM Inflow

    Data from spot inflow/outflow reveals that exchanges have witnessed an inflow of over $1.40 million worth of XLM tokens in the past 24 hours, suggesting a potential sell-off by these holders, which could lead to a price decline in the future.

    $3.30 Million Worth of Bearish Bet

    In addition to the activity of long-term holders, traders are also following the bearish market sentiment, as they are strongly betting on the downside. Data shows that traders are currently over-leveraged at $0.305 on the upper side and $0.286 on the lower side, both on the verge of liquidation. At these levels, traders have built $3.30 million and $611K worth of short and long positions, respectively.

    Source: Coinglass

    When combining all these on-chain metrics with technical analysis, it appears that bears are currently dominating, and XLM’s price could see a further decline in the coming days.

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