XLM faces resistance as it consolidates between $0.23 and $0.28.
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Key Takeaways
XLM has invalidated its bull flag breakout, with key support at $0.39 under threat.
Three indicators confirm sellers are in control, putting a deeper correction on the table.
However, if broader crypto sentiment rebounds, a rally toward $0.71 is still on the radar.
Stellar’s (XLM) price has decreased from its previous uptrend, dropping 10% in the last 24 hours. At press time, XLM’s price trades at $0.42, caught in the wave of a broader market pullback that has pushed the total crypto market cap below $4 trillion.
While some traders might be eyeing a quick bounce, the charts tell a different story. This analysis suggests XLM may dip even further before any meaningful recovery occurs.
XLM Breaks Down Below Bull Flag Pattern
On the daily XLM/USD chart, CCN spotted a bull flag formation. This pattern typically signals a brief pause before the next leg higher.
The pattern appeared below after XLM’s price upward breakout, followed by a tight, downward-sloping consolidation. Usually, XLM’s price should break above the upper flag resistance and resume the uptrend.
But that has not happened. Instead, the cryptocurrency has broken below the flag’s lower trendline. This decline puts XLM’s price at risk of an extended correction.
Further findings show that Bull-Bear Power (BBP) has fallen into the negative region. This decline indicates that bears (sellers) have now outperformed bulls (buyers).
Amid this, XLM’s price is on the verge of declining below the 20-day Exponential Moving Average (EMA). Should the altcoin drop below the 20 EMA (blue), it risks declining below the significant support at $0.39 with resistance at $0.47.
Zooming into the 4-hour chart, XLM tells a more cautious story. The token has broken below a bull flag, signaling that the much-anticipated run toward $1 has stalled — at least for now.
The indicators support the pullback. The Chaikin Money Flow (CMF) has dipped below the zero line, reflecting rising selling pressure.
Meanwhile, the Awesome Oscillator (AO) has also turned negative, confirming the altcoin’s earlier loss of bullish momentum.
If this trend holds, XLM’s price could dip below the $0.41 level, which aligns with the 0.618 Fibonacci golden pocket. Should bears tighten their grip, a drop to $0.33 is in play.
But bulls are not out of the picture yet. If buying pressure returns, XLM’s price could break back above the flag’s upper trendline, targeting $0.46 and $0.52 in the short term.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
