XLM’s Grim Price Outlook Faces One Unlikely Chance of Recovery
The post XLM’s Grim Price Outlook Faces One Unlikely Chance of Recovery appeared on BitcoinEthereumNews.com. Stellar’s recent breakout is quickly fading, with XLM down over 6% in the past week and wiping out its short-term momentum. Despite a 41% gain over three months, trends suggest sellers are regaining control. Moreover, hopes for a rebound hinge on a fragile, unlikely market imbalance. EMA Crossover Flashes a Clear Warning, Bearish Power Builds On the 4-hour chart, the XLM price has now fallen below all four EMAs – the 20, 50, 100, and 200-period exponential moving averages. Most notably, a bearish EMA crossover has just formed, where the 50 EMA (orange line) has dropped below the 100 EMA (sky blue line). XLM price and bearish crossover: TradingView This kind of crossover, also termed the “Death Cross,” is infamous for triggering sharp corrections. An Exponential Moving Average (EMA) gives more weight to recent price data to better capture momentum. When a shorter-term EMA crosses below a longer-term EMA, it’s seen as a bearish signal, suggesting that recent prices are declining faster than longer-term trends. When shorter-term averages like the 50 EMA dip under longer-term ones like the 100 EMA, it’s often seen as a momentum flip, where buyers lose control and sellers start dominating. But that’s not all. The same chart also shows deep “reds” in the Bull-Bear Power (BBP) indicator. This metric compares recent highs and lows to a trend-following average to gauge buying or selling dominance. XLM’s BBP is now in negative territory, confirming that bears have taken control of the short-term price structure. So far, the price action shows weakness. But that’s only half the story. Liquidation Map Shows Shorts Dominating, And That’s the Only Hope On Bitget, XLM has seen nearly $75.82 million in short liquidations and close to $20 million in long liquidations over the past 7 days — highlighting a heavy bearish bias…
The post XLM’s Grim Price Outlook Faces One Unlikely Chance of Recovery appeared on BitcoinEthereumNews.com.
Stellar’s recent breakout is quickly fading, with XLM down over 6% in the past week and wiping out its short-term momentum. Despite a 41% gain over three months, trends suggest sellers are regaining control. Moreover, hopes for a rebound hinge on a fragile, unlikely market imbalance. EMA Crossover Flashes a Clear Warning, Bearish Power Builds On the 4-hour chart, the XLM price has now fallen below all four EMAs – the 20, 50, 100, and 200-period exponential moving averages. Most notably, a bearish EMA crossover has just formed, where the 50 EMA (orange line) has dropped below the 100 EMA (sky blue line). XLM price and bearish crossover: TradingView This kind of crossover, also termed the “Death Cross,” is infamous for triggering sharp corrections. An Exponential Moving Average (EMA) gives more weight to recent price data to better capture momentum. When a shorter-term EMA crosses below a longer-term EMA, it’s seen as a bearish signal, suggesting that recent prices are declining faster than longer-term trends. When shorter-term averages like the 50 EMA dip under longer-term ones like the 100 EMA, it’s often seen as a momentum flip, where buyers lose control and sellers start dominating. But that’s not all. The same chart also shows deep “reds” in the Bull-Bear Power (BBP) indicator. This metric compares recent highs and lows to a trend-following average to gauge buying or selling dominance. XLM’s BBP is now in negative territory, confirming that bears have taken control of the short-term price structure. So far, the price action shows weakness. But that’s only half the story. Liquidation Map Shows Shorts Dominating, And That’s the Only Hope On Bitget, XLM has seen nearly $75.82 million in short liquidations and close to $20 million in long liquidations over the past 7 days — highlighting a heavy bearish bias…
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