XLM Faces 15% Decline Risk as Bearish Sentiment Persists

XLM, the native token of Stellar, is currently at a critical juncture as it approaches a significant price decline. In late February and early March 2025, the asset formed a bearish rising wedge pattern, which has since been driving market sentiment in a bearish direction. The price of XLM has reached a crucial lower boundary of its rising wedge pattern and is now consolidating, with traders and investors closely monitoring its movements.

According to expert technical analysis, XLM is at a key level of $0.285, which is seen as a make-or-break situation for the asset. If XLM fails to hold this key level and closes a four-hour candle below $0.28, there is a strong possibility that it could decline by 15% to reach the $0.236 level in the coming days. On the other hand, if sentiment shifts and XLM’s price soars, closing a daily candle above the $0.31 mark, it could pave the way for a massive upside rally. XLM’s daily chart indicates that the asset is in an uptrend, as it continues to trade above the 200 Exponential Moving Average (EMA) on the daily timeframe.

At press time, XLM is trading near $0.286, having recorded a 1% price surge in the past 24 hours. However, during the same period, its trading volume dropped by 10%, indicating lower participation from traders and investors, possibly due to unclear market sentiment. This bearish price action and market sentiment have led traders to strongly bet on short positions. Data from the on-chain analytics firm Coinglass reveals that traders are currently over-leveraged at $0.28 on the lower side, where they have built $995K worth of long positions. Meanwhile, $0.297 is another over-leveraged level, with traders having built $2.50 million worth of short positions. This clearly indicates that sentiment toward XLM remains bearish among traders, which could push the asset lower in the coming days.

On March 28, 2025, the price of XLM is anticipated to be at a critical juncture. According to expert technical analysis, XLM is currently at a key level of $0.285, which is seen as a pivotal point for the asset. This level could determine whether XLM will experience a significant price movement, either upward or downward. The ongoing market uncertainty has led to a bearish outlook for XLM, with analysts predicting a potential price decline due to the bearish price action it has formed. This bearish sentiment is further supported by the price prediction for March 28, which forecasts a price range of $0.2579 to $0.2967, with an average price of $0.2773. The recent price performance of XLM has been mixed, with a slight gain of 0.743% on the last trading day, rising from $0.291 to $0.293. However, this gain comes after a period of volatility, with XLM experiencing a decline of 2.16% over the last 24 hours.

Despite the bearish outlook, some analysts remain optimistic about XLM's potential for a rally. According to one analyst, XLM is poised for a 65% rally, defying the broader market crash. This optimism is based on the asset's strong fundamentals and its potential for adoption in the cryptocurrency market. However, it is important to note that this prediction is based on the analyst's forecast and may not reflect the actual price movement of XLM. In conclusion, the price of XLM on March 28, 2025, is at a critical juncture, with both bearish and bullish sentiments present in the market. The actual price movement of XLM will depend on various factors, including market sentiment, technical analysis, and fundamental developments. Investors should exercise caution and conduct their own research before making any investment decisions.