Stellar (XLM) Faces Bearish Pressure, Hovers Above $0.24 Support

Stellar (XLM) is currently in a precarious position, hovering just above a crucial support level at $0.24. The cryptocurrency has been experiencing a series of lower highs and diminishing momentum, putting bulls under significant pressure to maintain this level. A breakdown below $0.24 could trigger a sharp decline, potentially pushing the price towards $0.2200 or even $0.2000.

The prevailing trend for XLM is bearish, characterized by consistent lower highs and lower lows on the 4-hour chart. The cryptocurrency remains below key moving averages, with momentum favoring sellers. The MACD histogram is negative, and the signal line is dominant, indicating ongoing downward pressure. Additionally, XLM trades below both the 20 and 50 Exponential Moving Averages (EMAs), which have acted as dynamic resistance throughout the downtrend, confirming weak buying strength.

Technical indicators further support the bearish outlook. The Bollinger Bands show that the price is hugging the lower band, indicating oversold conditions. However, volatility is compressing, suggesting an impending breakout—likely downward unless buying pressure returns. The Volume Profile reveals low volume, underscoring weak conviction. A breakout or breakdown with strong volume will be crucial to validate the next move.

Key chart patterns also point to a bearish scenario. A descending triangle is forming on the 4-hour chart with a flat base near $0.2450. A breakdown would confirm a continuation lower. The recent consolidation resembles a bear flag, suggesting the downtrend is likely to resume soon. Additionally, a rounded top pattern indicates that upward momentum has fully stalled out.

The next few 4-hour candles are critical for XLM. A decisive break below $0.2450 could trigger a slide to $0.2200, followed by $0.2000 if bearish momentum strengthens. However, if bulls defend support and break above $0.2700, a short-term relief rally to $0.3000 could be in play. For now, the bearish bias remains intact unless volume spikes in favor of the bulls with a strong close above the 20-EMA.

Stellar (XLM) is at a critical juncture. The technical landscape suggests that sellers are still in control, but oversold signals offer bulls a narrow window for a potential bounce. Traders should closely monitor the $0.2450 level, as the next move will likely dictate XLM’s short-term trajectory. The bearish pressure is mounting, and the inability of the price to break above the 20 and 50 EMAs has created a sense of uncertainty among investors. The dynamic resistance levels have proven to be formidable barriers, and any attempts to push the price higher have been met with strong selling pressure. This has led to a series of lower highs and lower lows, indicating a clear downtrend. The bearish momentum is likely to continue as long as the price remains below the 20 and 50 EMAs. The moving averages are acting as a ceiling, preventing any significant upward movement. Investors are advised to exercise caution and consider the potential for further declines. The bearish sentiment is likely to persist until there is a clear break above the resistance levels, which could signal a reversal in the trend. However, until that happens, the bears are likely to remain in control, and the price of XLM is expected to continue its downward trajectory.