Stellar Lumens XLM Price Prediction: 70% Downturn Ahead?
After a remarkable 81% increase last year, XLM has had a rough start in 2024. As January wraps up, the coin has already seen a drop of over 13%. This decline is worrying for investors, with signs pointing to a potential further downturn. According to the current XLM price prediction, technical indicators suggest a continued bearish trend until there’s a breakout from the current trendline.
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Investors Awaiting Stellar’s Soroban Mainnet Launch
On the bright side, loyal XLM investors are holding onto their positions, eagerly awaiting the upcoming mainnet update from the Stellar Network.
The voting for the long-awaited Soroban Mainnet Launch is set for January 30th. Validators will decide on an immediate shift from Protocol 19 to Protocol 20.
If approved, this move will be a significant step toward the Soroban Mainnet launch, specifically the stable software release.
With just one week left until the voting, we can expect increased XLM price volatility at the end of January.
However, for now, prices are under pressure, and technical analysis is still pointing downward.
XLM Price Prediction: Trend Continuation Might Lead to a 76% Downturn
The weekly analysis of the XLM/USDT chart indicates potential continuity in the bearish trend. These observations are validated by the signals from the Ichimoku Cloud and Awesome Oscillator.
Prices persist below the Ichimoku Cloud, signalling prevailing selling pressure. Additionally, the Awesome Oscillator histograms have transitioned to red and are approaching the zero line, indicating a potential descent below it. Such a scenario would reinforce bearish momentum, aligning with a pessimistic XLM price prediction.
In the event of a sustained decline, initial support is anticipated at $0.070216. A breach below this level, followed by a subsequent close, has the potential to trigger the next support at $0.026208.
This particular threshold was last observed in March 2020 and signifies an approximate 76% decrease from the current price level.
Stellar Lumens XLM Price Prediction Bull Case
Conversely, for a trend reversal, XLM must surpass and close above the trendline. Following this, the initial resistance is projected at $0.134752, coinciding with the baseline of the Ichimoku Cloud. A breakthrough and close above this level could propel XLM towards $0.198689.
Nevertheless, prevailing indicators suggest a continuation of the current bearish trend unless a breakout above the trendline occurs.
Summary
Considering both fundamental and technical analyses, it is recommended that investors exercise patience. They should await a clear breakout and closure above the trendline before considering entry into a long position.
