$XLM Analysis and Trade Plan

The recent long liquidation of $8.7243K at $0.44185 suggests selling pressure has increased in Stellar (XLM).

Let’s break this down and create a clear trading strategy for the next move.

Market Overview

Current Price: $0.44185

Market Sentiment: Bearish after long liquidation. Sellers are dominating.

Volume Analysis: High sell volume indicates a possible continuation of the downtrend.

Key Levels to Watch

1. Buy Zone (Reversal Opportunity):

Range: $0.4200 - $0.4300

This is a potential support area where buyers may return.

2. Target Levels:

Target 1: $0.4500 (Short-term recovery)

Target 2: $0.4650 (Mid-range resistance)

Target 3 (Extended): $0.4800

3. Stop Loss:

Below $0.4150

This level invalidates the bullish recovery scenario.

Trading Plan

1. Entry:

Wait for a dip into the buy zone ($0.4200 - $0.4300).

2. Exit Strategy:

Take partial profits at $0.4500 and $0.4650.

Hold for $0.4800 only if bullish momentum strengthens.

3. Risk Management:

Keep your risk low (1-2% of your trading capital).

Strictly use a stop loss to prevent heavy losses.

Indicators Supporting the Analysis

RSI: Likely oversold, indicating a bounce could occur soon.

Support and Resistance: $0.4200 is a critical support zone.

Moving Averages: Prices may try to reclaim short-term moving averages if buyers step in.

Next Price Action Prediction

If XLM stays above $0.4200, a recovery toward $0.4500 or higher is possible.

However, a drop below $0.4150 could lead to further downside, possibly to $0.4000. Stay alert and follow your plan!

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