Stellar (XLM) faces a challenging period as it experiences a 10% price drop, jeopardizing its $10 billion market cap. Currently at $10.87 billion, XLM is under pressure from bearish momentum indicators. The RSI reflects a sharp decline to 39.9, indicating increased selling with potential oversold conditions looming.
The Ichimoku Cloud shows no reversal signals for XLM, trading below the cloud and reinforcing bearish sentiments. Market watchers eye the $0.351 support level. A failure could trigger further declines, but a rebound may facilitate recovery towards $0.40 and beyond.
The RSI, traditionally used to gauge price momentum, reflects a downtrend in XLM, slipping from a strong neutral zone to current levels closer to oversold, although not fully there yet. If selling persists, XLM could test lower levels, but renewed buying might stabilize the market.
The Ichimoku Cloud further emphasizes the bearish outlook with its conversion line below the baseline, indicating selling dominance. Past attempts to break the cloud have failed, underscoring bearish strength.
Despite the pressures, should XLM maintain the $0.351 support and rally, reaching $0.40 resistance could be possible. Surpassing this level may see XLM test $0.47 in future rally scenarios.
![Explaining why Stellar’s [XLM] price may be at the risk of a potential 30% dip](https://loutre.blockchair.io/w4/storage/news/2d065a81e30cf52ab74493b9ec97beaa.png){kind=small}
