XLM price entered a deep sell-off pressure as it sliced through a crucial level. While it appears to have found support level on the recent swing low, things could get ugly fast if the sellers continue to dump their holdings.
XLM price is currently trading at a price of $0.344 after sliding 13% over the past 12 hours. This sell-off pressure comes as the entire market structure for many cryptocurrencies was half-assed as they tried to recover from the May 19 and May 23
In an optimistic scenario, the intermediate support levels at a price of $0.327 and $0.30 could stop the bleeding and serve as a platform for reversal.
However, from the looks of it, this downswing may not be over. A worst-case scenario could see Stellar XLM price retest or sweep the range low at a price of $0.274 formed due to the May 23 crash.
Perhaps, a reversal pattern that stems around $0.274 would have more oomph than if it originated from the intermediate support level barriers mentioned above.
Therefore, investors should keep an eye out for a continuation of this sell-off.
On the other side, if Stellar XLM price manages to ignore the market conditions and produces a decisive close above the 50% Fibonacci retracement level at a price of $0.372, it would invalidate the bearish outlook and signal the presence of buyers.
Sustained trading above this price range would indicate that the recovery has begun. In such a case, Stellar XLM price could retest the swing highs along the way, but the buyers would target the supply zone’s lower limit, which nearly coincides with the range high at a price of $0.47.
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