Stellar [XLM] Bulls Battle $0.3 Resistance Amid Bitcoin Uncertainty

Stellar [XLM] price prediction – ‘Bearish’ market structure, but traders can see gains IF…

Stellar [XLM] has been maintaining a bearish trajectory, with low trading volumes in recent weeks. This suggests that the bearishness is a result of broader market uncertainty and Bitcoin [BTC] losses. However, the token is at a critical juncture on lower timeframe price charts, with bulls challenging the $0.3 resistance level. The question remains: can they succeed in creating a breakout?

The 61.8% Fibonacci retracement level has been flipped from support to resistance. At press time, the price witnessed a 19% bounce in a day and was testing the $0.299 region as resistance. It is possible that the bulls' efforts may be rebuffed once again.

The 1-day market structure has been bearish throughout February. Until this changes, swing traders should not bet on a bullish reversal. Instead, price bounces such as the most recent one could offer an opportunity to sell. At press time, the RSI on the daily chart remained below 40, reflecting sizeable bearish momentum, but the OBV was not on a downtrend. This hints at the potential for a quick recovery if Bitcoin can turn things around.

The 4-hour chart revealed a range formation between $0.256 and $0.3. Just above, the fair value gap from $0.303-$0.31 was also likely to oppose the bulls' progress. Even though the RSI was above neutral 50 and the OBV breached the local high, traders can expect a bearish move. Invalidation of this idea would be a retest of $0.3 as support, followed by a move beyond $0.31. Meanwhile, rejection from $0.3-$0.31 can be used to go short on XLM, targeting the $0.273 and $0.256 levels.

The past week's liquidation heatmap highlighted a strong magnetic zone just overhead. The $0.303-$0.31 zone has a cluster of liquidation levels that could be tested before a bearish reversal. However, traders must remain cautious. The 1-month liquidation heatmap revealed that the $