- XLM faces resistance at the 50-day EMA, with repeated failures raising concerns of a drop to $0.0840 support.
- Key support at $0.0754 is crucial for token, as a break below could invalidate the current market structure.
- XLM’s potential upside target is $0.14, but it must hold support and break through the 50 EMA to achieve this.
XLM, the currency associated with the Stellar network, is having a hard time in trying to go beyond the 50-day EMA. Cryptomorphic, a renowned personality in the crypto market, in a recent post on X pointed out that this key resistance level has been challenged by XLM multiple times but it has never been able to close above it. These repeated failures at this level create concern for a possible decline to the $0.0840 support trendline.
The 50 EMA is an essential technical tool the market prefers to regard as the short-term trend indicator. As seen, token could not reclaim this level, which means that the bulls are weakening. On the downside, with the latest rejection of the cryptocurrency is highly likely to revisit the lower supports. According to the analysis, the next crucial support level is gathered at the level of $0. 0754 which XLM has to have to support its current market structure.
XLM Struggles at 50 EMA
In case XLM does not maintain the $0.0754 support level, it is feared it may bring worst to the cryptocurrency. However, if the price goes slightly below it, one could presume that the current chart pattern would no longer be valid, which would most probably result in lower prices. This makes the $0. 0754 support level has a much significance to define token’s short term trend.
Support level and the possible point of entry into XLM is at $0.085. If it stays at this level, it could offer a chance to purchase the asset for those intending to build a position in it. However, if the price goes below this point, more significant support could be observed at the $0.0754 emerges as the next target, meaning it becomes significant as an accumulation zone. On the plus side, the Stellar token has a target which stands at $0.14 but this scenario depends with the cryptocurrency to hold support and at long last, cut through the 50 EMA.
These levels can hardly be overemphasized, as they are most probably going to dictate coin performance in the next couple of days. I am hoping to use this break below the $0.0754 would likely cause a bearish breakout while a defensive play above this level may present a bullish outlook.
As the market pays attention to these significant levels XLM’s future is still unclear. Both traders and investors should keep their eyes on the cryptocurrency’s interaction with the support level for DXY and its further fight against the 50 EMA barrier.
