- Stellar (XLM) is at a critical support level of $0.2450, with bears in control and a potential breakdown toward $0.2200 or $0.2000 if this level fails.
- A move above $0.2700 could trigger a short-term rally, but the overall bearish bias remains intact unless significant bullish momentum emerges.
Stellar (XLM) is under heavy pressure, hovering just above a critical support level at $0.24. After weeks of lower highs and declining momentum, the cryptocurrency is at a pivotal point. Bears are on the hunt for a breakdown, while bulls must defend this level to prevent further losses. Here’s a breakdown of the technical indicators and price levels to watch for the next potential move in XLM’s price.
Key Support & Resistance Levels
Support Zone: $0.2400 – $0.2450
This is a crucial support area for XLM. If the price falls below this zone, it could trigger a sharp decline toward $0.2200, or even as low as $0.2000. Bulls will need to hold this line to avoid a deeper correction.
Resistance Levels: $0.2700 and $0.3000
On the upside, Stellar faces resistance at $0.2700 and $0.3000. To shift the current bearish sentiment, bulls must reclaim these levels and push the price higher. A break above these levels could spark a short-term relief rally.
Trend Overview
XLM is currently in a bearish trend, marked by consistent lower highs and lower lows. The price remains below both the 20-EMA and 50-EMA, signaling weak buying strength and favoring the sellers. Momentum continues to lean toward a downside continuation, with the current trend showing little sign of reversal.
Indicator Insights
MACD (12, 26):
The MACD histogram is negative, with the signal line dominating. There are no signs of bullish divergence or crossover, indicating continued downward pressure.
EMA (20 & 50):
XLM is trading below both the 20 and 50 EMAs, which have served as dynamic resistance during the downtrend. This confirms the prevailing weakness in the market and highlights the difficulty bulls face in breaking the current pattern.
Bollinger Bands:
The price is testing the lower Bollinger Band, signaling oversold conditions. However, the volatility is compressing, suggesting a breakout is imminent — likely in a downward direction unless buying pressure suddenly emerges.
Bearish Patterns to Watch
A classic bearish pattern is forming on the 4-hour chart, resembling a bear flag. If the price breaks below the $0.2450 level, this could signal a continuation of the downtrend, possibly reaching $0.2200 or even $0.2000. Traders should keep an eye on the volume profile, as a strong breakout or breakdown will depend on increased trading volume.
The Next Move for XLM
Stellar (XLM) is at a crossroads. Bears are firmly in control, but oversold signals offer a narrow window for a potential bounce. A decisive move below $0.2450 could trigger further declines, while a break above $0.2700 could lead to a relief rally. Traders should closely monitor this key support level, as it will likely dictate the direction of XLM’s next move.
