Essential Insights
TL;DR
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Support Test: Stellar (XLM) is approaching a critical support zone at $0.32–$0.30 after being rejected at the $0.45 resistance, currently trading around $0.36.
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Long Liquidations Surge: Long liquidations have surged to $192K as XLM declines, emphasizing selling pressure, particularly on the OKX platform.
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Upcoming Protocol Upgrade: The awaited Protocol 23 upgrade on September 3 may influence market dynamics, with traders watching for stabilization and potential breakout.
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Market Consolidation: Trading volume has decreased since July, indicating consolidation as traders await further price direction amidst the recent downward trend.
Is Stellar (XLM) Setting Up for Its Next Major Breakout?
Stellar (XLM) is currently navigating critical price levels. The token traded at $0.36 as of this report, with trading volume hitting $288 million in the last 24 hours. Recently, XLM has faced a 7% decline over the past week. Most importantly, it approaches a significant support zone between $0.32 and $0.30.
Alpha Crypto Signal highlighted this situation, stating, “The rejection from the $0.45 resistance is playing out cleanly, and price action is now inching toward that key demand area.” This demand zone is crucial because it has historically acted as a base for rebounds. Traders eagerly watch this area for potential accumulation opportunities.
Price trends show that short-term indicators remain in place, with exponential moving average (EMA) at $0.37 and simple moving average (SMA) at $0.41. If buyers successfully defend the support level, a bounce back toward $0.50–$0.55 could be on the horizon. Conversely, a decisive fall below $0.30 might signal further losses.
Long liquidations have increased recently, with over $192,900 closed as XLM slipped. This shift indicates a growing pressure on long positions since the price move downwards began. The bulk of these liquidations occurred on OKX, where $138,160 worth of long positions were wiped out.
On September 3, Stellar will implement a significant network update known as Protocol 23. While the exact effects on market behavior remain unclear, the upgrade draws attention as traders seek signs of stability and potential breakouts in the near future.
As Stellar edges closer to critical support and prepares for its upgrade, many investors and traders remain optimistic about its value proposition. XLM offers unique solutions for cross-border payments, aiming to streamline transactions in the international payment landscape.
Charts and opinions vary widely, but optimistic projections exist for Stellar’s potential in the coming weeks.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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