Due to the weakening of the support level and dumping pressure, XLM faces a 30% downside risk in price.

A large amount of funds flowing into the exchange indicates the possibility of dumping, which exacerbates the bearish outlook for XLM.

The reduction of open contracts and the clearing risk indicate that traders are unwilling to buy, which exacerbates the price decline.

In the bearish market, Stellar Lumens (XLM) faces significant pressure. After a large-scale dumping, the altcoin shows signs of further decline. The key support level is weakening, causing concerns. If XLM fails to hold this level, analysts predict that the price could drop by 30%. Let's take a closer look at the technical indicators and market factors behind this potential decline.

Despite the bearish pattern, Stellar (XLM) price still shows signs of life

Key technical indicators and critical levels worth paying attention to

XLM has formed a descending triangle pattern on the daily chart. This indicates a possible breakthrough of the support level. Over the past month, XLM has tested the $0.334 level three times. Each test, the support seems to be weakening. If XLM closes below $0.325, it may fall by 30%. If dumping pressure continues to exist, it may drop to $0.225.

Bearish market sentiment and on-chain indicators

Coinglass's on-chain data depicts a bearish picture for XLM. The token has seen a significant influx of $3.9 million into the exchange, which typically indicates that long-term holders are preparing to sell. When assets are moved to an exchange, traders usually anticipate a price drop.

In addition, XLM's open positions contracts have decreased by 4.5% in just 24 hours. This indicates that traders are unwilling to open new positions in the market panic. If the price continues to fall, traders holding long positions at $0.342 face the risk of liquidation. Short sellers have established a large number of positions around $0.373, betting that the price will not exceed this point.

XLM shows clear signs of potential price decline. The token faces weak support levels, increasing dumping pressure, and bearish market sentiment. If XLM falls below $0.325, it could drop by 30%. Pay close attention to the levels of $0.325 and $0.342, as these levels may trigger significant price fluctuations.