As it falls below important moving averages, Stellar finds itself in a difficult position: the asset's 50 EMA, a crucial support level during its most recent uptrend, has been broken below. By highlighting mounting bearish pressure, this move calls into question whether the recent price movements are sustainable. The fact that XLM has also dropped below the 26 EMA, another important indicator that usually serves as a dynamic support level during bullish trends, is even more concerning.
For long-term investors, a clear breakdown below this level might expose XLM to a more substantial correction toward the 200 EMA at $0.24. Conversely, a robust bounce above the 50 EMA might bolster bullish sentiment and pave the way for a retest of the resistance level at $0.44.
There is potential for price movement in either direction, as the RSI is presently hovering close to neutral territory. The situation necessitates caution even though the breakdown below these key indicators is not yet complete.
