Stellar Price at Risk as Bearish Market Trends Take Hold

The Stellar (XLM) cryptocurrency has been under pressure due to escalating geopolitical tensions between the United States and Iran. This uncertainty has led to a broader downturn in the crypto market, with XLM being no exception.

According to recent analysis, XLM's price action is at risk of a significant decline if it fails to hold onto key support levels. A bearish head-and-shoulders pattern has formed on the daily chart, indicating potential further downside momentum.

The Average Directional Index (ADX) has also hit 30.40, suggesting strong market momentum in favor of bears. Meanwhile, derivatives tool Coinglass reveals that short-term traders are dominating the current market with bearish views.