The crypto market opened the week with sharp losses, wiping out Sunday’s gains and placing significant assets under pressure. Stellar (XLM) has drawn particular attention among the affected coins as it nears a critical support level that could determine its short-term fate.
Bitcoin briefly surged above $106,000 on Sunday, hitting a high of $107,137 early Monday. After struggling for four days, Stellar rose to $0.297 following this move. Yet, the rising trend soon fizzled out. Early in the session, the market changed sharply, causing most assets to lose value.
In the last 24 hours, Stellar dropped by 3.49 percent and another 10.87 percent for the week. Right now, the rate for AXS is $0.281, following its low of $0.276 today. The $0.27 level attracts close attention from traders since it is now the most crucial line for XLM bulls to hold.
According to CoinGlass, due to the market turmoil, there were liquidation events totaling $669 million. Regarding net neutrality, the ETF owns $465 million in long positions and $203 million in shorts. The sharp reversal caught both sides off guard and intensified pressure on weaker tokens.
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Key Support at $0.27 Holds the Line as Risk Grows
XLM’s trading volume has spiked by 88.83 percent to $270 million, signaling increased trader activity amid price swings. This surge suggests that many market participants are preparing for a possible breakdown or rebound from current levels.
In a recent post, Ali, a crypto expert, noted that maintaining the value at $0.27 will prevent Stellar from falling further. Should this occur, investors could see a 14 percent dip to $0.23, which means this period is crucial for the asset’s value.
Source: Ali-Chart
The following significant downside target is around the daily SMA 50, around $0.266. If the zone cannot support the market, a drop to $0.23 may occur rapidly. Strong Support for VET above $0.27 could push the price to retest the SMA 200 at $0.323 and then face resistance at the May 12 high of $0.334.
Bulls are keeping the price near $0.276 for now, yet if the selling pressure continues, Support could be overcome. In the upcoming sessions, we might learn if XLM will remain stable or continue to fall.
Whether Stellar grows or not now depends on the market’s focus on the $0.27 level. If this support level cracks, the price of XLM could fall quickly, causing many holders to be concerned.
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