 ▲ Stellar (XLM) / ChatGPT-generated image © |
XRP is facing selling pressure around the $1.35 level, heightening market tension over its short-term direction. Amid a broader cryptocurrency downturn triggered by massive capital outflows from Bitcoin (BTC), Stellar Lumens (XLM) has fallen into a slump after losing a key technical support level.
According to CoinMarketCap on March 8 (local time), Stellar Lumens fell 2.16% over the past 24 hours to $0.149, underperforming the overall weak market trend.
The primary cause of the decline is a technical breakdown below major moving averages. Stellar encountered resistance at the 7-day simple moving average (SMA) at $0.154 and slipped below the 30-day SMA at $0.159. The 7-day relative strength index (RSI) stands at 37.5, indicating oversold conditions, but trading volume dropped 17.91%, suggesting a lack of strong buying conviction to reverse the downtrend. Social analytics also confirmed price rejection at a key liquidity zone closely watched by traders.
Broader macro pressure and risk aversion toward altcoins further fueled the downturn. According to SoSoValue data, Bitcoin spot exchange-traded funds (ETFs) recorded massive net outflows totaling $576.8 million over two days, pushing Bitcoin down 1.22%. Meanwhile, CoinMarketCap’s Altcoin Season Index fell 5.26%, signaling capital flight from higher-risk altcoin markets. Stellar’s decline reflects this amplified macro-level risk-off sentiment rather than coin-specific negative news.
The short-term market trajectory hinges on whether Bitcoin can recover from ETF outflow shocks and hold the $67,000 level. For Stellar, defending support at $0.147 is critical. If this level breaks, there is a risk of further decline toward the next support at $0.14. Conversely, reclaiming the $0.151 threshold could open the door for a short-term rebound toward the 7-day SMA.
Currently, Stellar is under strong downward pressure as widespread risk-off sentiment in broader markets aligns with its technical downtrend. Having entered deep oversold territory, Bitcoin’s price movement and the defense of the $0.147 support level will be key factors determining the potential for a rebound.
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