Stellar lumens network’s validator nodes experienced an unexpected price breakdown recently. During the same period, the stellar XLM price also hit a dead end and is eyeing a pullback.

On April 6, several Stellar Development Foundation’s (SDF) validator nodes temporarily stopped validating transactions, which resulted in a halt for some transactions while others progressed as usual.

XLM price may reverse as major red flag develops

In a blog post, the SDT team stated:

During the entirety of the SDF node downtime, the Stellar lumens network remained online. Because it's decentralized, and the majority of Stellar lumens network validator nodes were still functioning, the network continued to process transactions.

Although the SDF worked to resolve the issues quickly, popular exchanges like Binance, Bitfinex and Bitstamp reported this issue as they halted withdrawals.

Despite the recent setback, there also are positive news surrounding Stellar XLM, as investment trust Grayscale increased its Stellar holdings by purchasing 5.5 million XLM tokens last week.

The recent addition brings their total XLM holdings to 68.59 million, worth approximately $37 million at the present price.

The Stellar XLM price has failed to create a better high because it faces resistance at the ascending parallel channel middle line. The technical formation is made as a result of higher highs and higher lows connected using trend lines.

After creating a swing low on march 25, the remittance token was on a trajectory toward the channel’s upper boundary. However, the XLM price journey faced a blockade around the previous local top at $0.60, which coincides with the center line.

A rejection here might send the Stellar price crashing toward the lower boundary at $0.41. However, this downtrend will likely face exhaustion after a 22% drop to $0.37, which is the State Trend Support found out by the Momentum Reversal Indicator (MRI).

If sellers overwhelm the level mentioned above, the XLM price could slide another 10% to a subsequent demand barrier at $0.33.

Adding credence to the bearish outlook is the recently spawned cycle top signal presented in the form of a red-one candlestick on the 1-day chart. This setup forecasts a one-to-four candlestick correction.

A potential spike in buying pressure that may push the XLM price above the MRI’s breakout line at $0.70 might catalyze the buyers to compile . Such a move would offer the remittance token an opportunity to surge toward the ascending parallel channel upper line around $1.42.

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