XLM Coin News: Price Plunges 16% as Bears Seize Control – Is the Worst Yet to Come?

The cryptocurrency market's volatility continues to reshape trading landscapes, and Stellar (XLM) has become the latest casualty in this ongoing bearish sentiment. As digital asset traders navigate increasingly choppy waters, XLM's recent price action serves as a stark reminder of how quickly momentum can shift in the crypto space.

XLM Price Caught in Bearish Grip

Stellar's native token XLM is currently languishing around $0.3938, painting a picture that's anything but stellar for bullish investors. The cryptocurrency has been caught in a relentless downward spiral, with short sellers celebrating as their positions have already netted approximately 16% in profits.

This bearish momentum isn't just a flash in the pan – it's part of a sustained downtrend that has traders scrambling to reassess their strategies. Recent social media chatter among crypto traders suggests that many are either cashing out their profitable short positions or implementing trailing stop-losses to ride the wave while protecting their gains.

The current price action reflects broader market uncertainty, with XLM struggling to find its footing amid persistent selling pressure. For those who positioned themselves on the short side early, the rewards have been substantial, but the question now becomes whether this decline has more room to run.

Critical Price Zones in Focus

Technical traders are keeping a laser focus on two crucial price levels that could determine XLM's next major move. The support zone lurking below the $0.39 mark has become the line in the sand for bulls hoping to stage a comeback.

Meanwhile, resistance remains stubbornly positioned around the $0.46 level, creating a significant hurdle for any potential recovery attempts. This price range has essentially become XLM's battlefield, where bulls and bears are locked in an ongoing struggle for control.

Should the current support level give way, we could see XLM cascading toward even lower lows, potentially triggering a fresh wave of selling from panicked holders. However, if buyers can step in and defend this critical zone, it might just provide the springboard needed for a relief rally that could catch bears off guard.

The coming sessions will likely be pivotal in determining whether XLM can mount a credible defense or if the bears will continue their victory lap.