XLM slips below $0.175: Can buyers defend the next support?

Stellar’s XLM has fallen below the $0.175 area that buyers were watching last week. It traded around $0.1691 on October 27 after dipping to $0.1665 during the session.

A look at the chart showed that buyers briefly slowed the decline, but they have not been able to hold on to those gains as XLM continues to trade below its recent highs.

Last week’s bounce fades

On October 23, XLM was trying to find its footing around the $0.175 price area. That area is important because it gave buyers a chance to stabilize the price after its negative trends.

A look at the chart showed that the attempt did not last, and it has fallen below that level and is now closer to the lows it reached in August.

The decline comes after its retreat from late September, when it reached around the $0.23 price level. It has tried to bounce since then, but those attempts have failed, leaving the price below each previous recovery attempt it made.

That does not mean that buyers have disappeared. This is because XLM recovered slightly after touching the $0.1665 level on October 27. But trading continued at the time of this writing, so the final price is not known yet.

What happens below $0.175 matters now

A look at the chart shows that the $0.164 price area, just below the latest lows, looks like the next place to watch if selling continues.

If buyers can hold that area, XLM may get another chance to recover toward the $0.175 price level. If it is able to return above that level, it would show progress, but it needs more than a brief move to confirm the recovery.

If it continues to fall below the $0.164 area, it would shift attention toward the $0.155–$0.16 region, which was where it traded in August. Those earlier price trends show that it could see a decline, but they do not guarantee where buyers will step in.

For now, it remains to be seen if  XLM can prevent last week’s failed bounce and prevent more declines. Its move below the $0.175 price level has given sellers the advantage, but how it responds near the recent lows will tell traders what to expect next.

Final Summary

• XLM traded near the $0.169 area after falling below the $0.175 area traders watched last week.
• Buyers face a test near the $0.164 area, but a recovery toward $0.175 would show improvement.