Stellar Price Faces Harsh Reversal Amid Crypto Market Meltdown

The Stellar price has suffered a significant reversal, plummeting to its lowest level since November 23. The cryptocurrency crashed to $0.3570, marking a 45% decline from its highest point this year. This downturn is part of the ongoing meltdown in the cryptocurrency market, with Bitcoin dropping to $97,700, significantly lower than last week’s high of $104,000.

Stellar’s Retreat Coincides with Ripple’s Decline

Stellar’s retreat also coincided with Ripple dropping to a key support level of $2, down 25% from its all-time high. Notably, XLM often experiences larger swings than XRP, with XLM surging by over 500% in November, compared to XRP’s 450% rise.

Potential Bullish Catalysts for Stellar’s Price

Despite the current downturn, some potential bullish catalysts could push Stellar’s price higher in the long term. These include:

  • Rising odds that the Donald Trump administration may be more favorable to the crypto industry, with Eric Trump noting his father’s commitment to making the US the crypto capital of the world.
  • Growing anticipation of a spot XLM ETF in 2025, which could attract significant inflows from institutional investors.
  • More developers adopting the Stellar blockchain, with the total value locked in its decentralized finance network rising to $46 million.

Stellar Price Analysis

The daily chart indicates that XLM’s price has suffered a harsh reversal, following the formation of a near double-top pattern at $0.6040, a well-known bearish market signal. Stellar’s price has fallen below the neckline at $0.4168 and the 38.2% Fibonacci retracement level.

This decline is partly attributed to the coin entering the markdown phase of the Wyckoff Method. According to Wyckoff’s theory, assets go through four phases: accumulation, markup, distribution, and markdown. The markdown phase is characterized by supply outpacing demand.

Key Levels to Watch

If this trend continues, the next potential level to watch is $0.2900, corresponding to the 61.8% retracement point. This target also aligns with the double-top measurement. In the long term, however, there are odds that the Stellar price will bounce back and reach $1, if it rises above the year-to-date high at $0.6355.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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