Stellar's Price Must Reclaim These Levels to Shift Short-Term Bias Bullishly
The cryptocurrency market has seen a decline in recent days, with Bitcoin and Ethereum down by 3.0% for the day. The wider crypto market capitalization has fallen 2.43% over the past 24 hours.
XLM, or Stellar, is also experiencing a drawdown, shedding 6% over the past week. This comes after a longer-term trend of seller-dominated price action, with Bitcoin unable to climb above $67k and Ethereum facing stiff opposition around the $2k round number supply zone.
In May, XLM had a sharp rally from $0.139 to $0.298 in just one week, establishing a bullish swing structure. However, this move was not convincingly cleared, with the $0.26-$0.27 supply zone remaining intact.
The 78.6% Fibonacci retracement level has been breached, indicating that further drawdown is likely. Traders are advised to wait to buy XLM until it can reclaim key resistance levels at $0.175 and $0.183.