- Stellar (XLM) is attempting a recovery after a recent decline, but its ability to sustain gains remains uncertain.
- Stellar must reclaim key support levels above the 200-day SMA to confirm a bullish reversal and avoid further declines.
Stellar (XLM) is attempting a comeback after a two-day decline, sparking curiosity among investors. At the time of writing, XLM is up 1.01% in the last 24 hours, trading at $0.27. While the price uptick is encouraging, uncertainty looms over its sustainability.
A Struggle to Hold Ground
Since hitting a multi-year high of $0.638 in November 2024, Stellar has struggled to regain its bullish momentum. A strong attempt at recovery in January 2025 met resistance at $0.51, causing a subsequent decline below the daily 50-day Simple Moving Average (SMA) at $0.297.
March has been a challenging month for XLM, with its price fluctuating between its daily 50-SMA and 200-SMA, currently at $0.297 and $0.28, respectively. The mid-March dip below this range was short-lived, as XLM quickly bounced back. However, Friday’s hotter-than-expected inflation report sent shockwaves through the crypto market, dragging XLM to lows of $0.269, pushing it below the 200-day SMA once again.
A Turning Point or a Temporary Lift?
The key question now is whether XLM’s rebound is the start of a sustained recovery or just a brief relief rally. Market sentiment remains cautious, with analysts closely monitoring macroeconomic trends, as no immediate crypto-specific catalysts are in sight.
For XLM to solidify its recovery, reclaiming the daily 200-SMA at $0.28 is crucial. Holding above this level could prevent further declines and allow for consolidation before a potential breakout. The daily 50-SMA at $0.297 remains the next short-term resistance, and breaking above it could open the door for higher targets at $0.375 and $0.514.
Stellar: The Road Ahead for XLM
Investor confidence in XLM’s recovery will largely depend on broader market conditions. If buying pressure increases across the crypto space, Stellar could see a stronger push toward key resistance levels. However, if market uncertainty persists, XLM may struggle to maintain its recent gains.
For now, all eyes are on whether XLM can reclaim critical support levels and sustain its rebound. Will this be the start of a renewed bullish trend, or is another dip on the horizon? The coming days will be crucial in determining Stellar’s next major move.