Usman Salis
Stellar's native token XLM finds itself at a critical juncture as bearish sentiment intensifies across the crypto market. After a promising summer rally that captured traders' attention, the digital asset now confronts significant technical and fundamental headwinds that could determine its near-term direction.
XLM Price Faces Bearish Bias at $0.36 Support
Stellar (XLM) is showing clear signs that its bullish momentum is fading after the summer rally, according to famous trader. The weekly chart reveals XLM barely holding above the crucial $0.36 support level, while market sentiment grows increasingly cautious as momentum indicators signal further weakness ahead.
Despite the August highs sparking optimism in social circles, the current bearish trend has traders keeping a close eye on key support zones. If buyers can't successfully defend the $0.36 area, XLM could quickly accelerate toward $0.32 and potentially drop as low as $0.30, representing a significant retracement from recent gains.
Stellar (XLM) Price Risks Breakdown Despite Hopes for Relief Rally
The technical picture paints a concerning scenario for XLM holders. While the MACD hints at possible short-term relief rallies, CRSI levels climbing above 86 flash warning signals of overbought conditions that substantially increase the likelihood of another downward move.
Adding to the pressure, competitive challenges and regulatory uncertainties continue weighing on market sentiment, making Stellar's immediate future heavily dependent on whether the $0.36 support can withstand current selling pressure. A decisive close below this critical level would likely hand full control to the bears. However, if XLM manages to hold above $0.36, it could preserve the medium-term bullish structure and give buyers an opportunity to regain lost ground.
Usman Salis
