- Stellar (XLM) faces strong resistance at $0.55, a level that has limited price gains since 2018, leading to repeated sell-offs.
- The broader cryptocurrency market is experiencing a downturn, with Bitcoin falling below $86,000 and major altcoins posting losses.
- Liquidations across the crypto market have surpassed $493 million, as long positions faced significant pressure during the sell-off.
Stellar (XLM) is experiencing renewed pressure as the broader cryptocurrency market faces increased selling activity. The asset has dropped 8% in the last 24 hours, now trading at $0.276. Analysts have highlighted a major resistance at $0.55, a level that has remained a key hurdle for nearly seven years.
Historical Resistance at $0.55
Crypto analyst Ali recognized $0.55 as a key resistance level for XLM during 2018. The resistance barrier at $0.55 has shown itself multiple times to block price recovery as sellers enter the market when Stellar attempts to surpass its level. The incoming early December 2024 attempt to break through the resistance turned into a downward momentum which forced XLM into a pattern of price consolidation.
Following the December rejection, Stellar lost support at the 50-day simple moving average (SMA), which was positioned at $0.351. By late January, the asset had fallen to the lower boundary of its range. Currently, XLM is fluctuating between the 50-day and 200-day SMAs, which are at $0.355 and $0.26, respectively. A decisive move beyond these levels could determine the next trend direction.
Crypto Market Sees Widespread Selling
The complete crypto market demonstrates declining values at this time. Bitcoin (BTC) slid below $86,000 as the early Saturday session began with a 3.38% market decrease. ETH reached a price level of $2,128 before its value decreased by 2.95%. Major cryptocurrency tokens XRP together with Solana (SOL), Dogecoin (DOGE) and Cardano (ADA) have lost value between 4% and 10% over the past period.
As market volatility intensifies, leveraged traders have suffered significant losses. According to CoinGlass data, total liquidations have surpassed $493 million across various crypto assets. Bullish traders faced the largest impact, with $317 million in long positions being wiped out. Meanwhile, $154 million in short positions were also liquidated during the market decline.
The current downtrend in the crypto market occurred during a period when macroeconomic factors emerged while essential announcements failed to materialize at the Crypto Summit on Friday. Market participants were expecting favorable results yet they discovered minimal influential information during the period. The market remains uncertain so traders show increased caution in their trading activities.
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