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Stellar price remains under pressure as cryptocurrency market weakness continues to impact altcoins. XLM declined continuously, confirming the bearish chart pattern and strengthening short-term downside risks.
While traders may be looking to capitalize on this momentum, the behavior of the chain suggests that XLM holders are positioned differently.
Star holders can save XLM
Derivative data highlights a clear imbalance in market positioning. The liquidation chart shows that the exposure is unbalanced about 68% towards short traders, indicating a strong downside bias. This dominance often increases sensitivity to volatility, as crowded trades amplify price reactions when momentum changes.
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Under current levels, it varies Long liquidation heavy leverage pools Between $0.20 and $0.185. A move into this area could lead to forced liquidation, increasing selling pressure and accelerating the decline. This situation explains why bears are looking for more pullbacks, as pockets of liquidity remain at risk below key supports.
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Despite the bearish situation, the macro indicators are providing first indications of divergence. The Chicken Money Flow Index has seen higher lows for four consecutive days, even with… Record the XLM price The lowest lows. This upward divergence indicates that capital flows are increasing below the surface.
CMF tracks buying and selling pressure through price and volume. An increase in CMF while a decrease in price often indicates accumulation rather than distribution. For Stellar, this pattern indicates that investors are gradually building positions, creating the conditions for a potential short-term reversal once selling pressure fades.
The XLM price needs to secure support
XLM is trading near $0.212 at the time of writing, and remains just above the $0.210 support level. Earlier this week, the altcoin broke out of a descending triangle pattern, a formation that generally favors a continuation of a bearish descent. This rupture keeps the short-term downside risks high.
The descending triangle predicts a 14% upside potential towards $0.188, That puts XLM About 11% away from the target. However, the price may stabilize before reaching this level. Support is likely to appear at around $0.210 or, in the worst case, near $0.201. This uncertainty supports the neutral view of Happism.
The change in momentum depends on the defense of key levels. If $0.210 remains as support, Stellar can regain stability. It can cause a sustained rebound XLM verse The resistance area is at $0.230. The restoration of this level will invalidate the bearish pattern and indicate a short-term reversal led by improving demand.
