The Stellar token (XLM) is currently experiencing substantial downward pressure, with market data signaling the potential for further losses.
Recent technical analysis highlights a breach of the upper Bollinger Band at $0.6374, with the 20-day moving average acting as a median point at $0.21. This situation is reminiscent of 2021 when XLM peaked at $0.797 before suffering a sharp 48.73% decline within a week.
Over the past three weeks, XLM has already dropped by over 40%, and at the time of writing, it is trading at $0.3541—down 0.4% in the last 24 hours, as reported by CoinMarketCap.
Analysts suggest that XLM could face a further 45% drop if bearish market conditions persist. While historical patterns provide some context, external market forces and overall cryptocurrency sentiment remain key factors in determining the token’s future performance.
Japanese Government Hesitant on Bitcoin as a Reserve Asset
The Japanese government has recently expressed caution regarding Bitcoin’s adoption as a reserve currency. According to Wu Blockchain, citing CoinPost, Satoshi Hamada, a member of Japan’s House of Councillors, urged the government to follow the United States in incorporating Bitcoin into its reserve strategy.
Despite these calls, Prime Minister Shigeru Ishiba stated that Japan lacks sufficient information on the U.S.’s actions concerning Bitcoin reserves.
Additionally, crypto assets are not classified as foreign exchange under Japan’s regulatory framework, and concerns about the security and liquidity of such assets have further complicated their consideration as reserves. The government’s stance underscores a cautious approach toward integrating volatile assets into national financial policies.
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Shiba Inu (SHIB) Faces Critical Support Level Test
Shiba Inu (SHIB) is grappling with significant market challenges, as bearish sentiment weighs heavily on the asset. On-chain data shows that SHIB is trading near $0.00002164, with its key support at the 50-day exponential moving average (EMA) under considerable strain. The 200-day EMA is now closely aligned with the asset’s current price, creating an additional layer of vulnerability.
A failure to hold these critical support levels could trigger a steep decline, potentially pushing SHIB down to $0.0000204 or lower. Large transaction volumes involving institutional investors have also declined sharply, suggesting reduced confidence in the asset.
If key support is lost, panic selling could further amplify losses. However, there remains some potential for recovery if SHIB rebounds from the 200-day EMA and attracts speculative interest.
The coming days are expected to be pivotal for XLM, SHIB, and the broader cryptocurrency market, as external factors and investor sentiment continue to shape their trajectories.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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