Crypto price prediction: Stellar (XLM) in the threat to more price fall

Crypto analysis: Stellar (XLM)

In December, Stellar's price action faced a tough start after a strong performance in November. November was the best month for Stellar (XLM) since 2021 and marked the most significant surge in the 2024 crypto rally. However, as December began, Stellar struggled to maintain its momentum and couldn't reach the highs it achieved in November. According to an analysis on December 12, the support zone at 0.4815, just below November's closing level, was crucial to monitor.

Following the failed attempt to push higher, Stellar's price entered a downtrend. Over the course of December, it lost more than 48% of its value, falling to just above the 0.3000 support line. By December 29, 2024, there was a slight rebound in price, reaching the 0.3525 resistance level. Despite this minor recovery, the future direction of Stellar's price remains uncertain.

The monthly chart reflects a loss of about 50% of November's gains, suggesting that the downtrend might continue in the long run. This substantial drop highlights the volatility of the cryptocurrency market and the challenges faced by Stellar in sustaining its earlier gains.

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The 0.3525 resistance level is a critical point to watch. If the Bulls cannot defend this level, it could lead to further declines. Investors and traders are closely monitoring this resistance line, as it serves as a key indicator of potential market movements.

A break above the 0.3525 level could indicate a possible recovery for Stellar. On the other hand, if the price fails to hold above the 0.3000 support line, it might result in even lower prices. The coming days will be crucial in determining whether Stellar can regain its upward momentum or if it will continue to face downward pressure.