Stellar’s XLM has dropped 16%, but selling pressure appears to be fading.
The daily chart shows a falling wedge, with CMF testing positive territory.
A breakout could lift XLM to $0.71, while failure to hold support risks a slide.
XLM, the native cryptocurrency of the Stellar blockchain, has shed 16% of its market value. However, selling pressure now appears to be fading.
Rather than signaling an extended decline, the technical setup suggests XLM price is primed for a bounce that could go beyond a minor recovery. If momentum holds, XLM has the potential to stage a massive rally and set a new 2025 high.
Here’s why the tide may be turning in Stellar’s favor.
XLM Bears Lose Steam
On the daily chart, XLM’s price consolidates within a symmetrical triangle, signaling that a decisive move could be near. As of this writing, the Chaikin Money Flow (CMF) has broken out of its downtrend.
It is also testing the zero signal line. If the CMF moves into positive territory, it confirms rising capital inflows and strengthens the case for a bullish breakout from the triangle.
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Looking at the same chart, CCN observed that the Money Flow Index (MFI) places XLM near oversold territory. The MFI measures the price and trading volume to assess buying and selling pressure.
Readings below 30 typically indicate oversold conditions, meaning sellers may be exhausting their momentum while buyers prepare to step in.
If the MFI continues to hover near these levels, it could act as a signal that XLM’s price is primed for a reversal. Therefore, if buying pressure increases at this point, XLM’s price might clear the $0.45 resistance.
On the 4-hour chart, XLM has formed a falling wedge, a bullish reversal pattern that often signals an impending breakout to the upside. If buyers step in with sufficient momentum, this setup could provide the spark needed for XLM to reverse its recent downtrend and reclaim higher levels.
In terms of targets, a breakout could see XLM first challenge the $0.41 resistance.
Clearing this level may provide the momentum to rally toward $0.52, and if bullish pressure is sustained, the next milestone could be a new yearly high of $0.71.
XLM/USD 4-Hour Chart | Credit: TradingView
On the flip side, if selling pressure intensifies, XLM risks breaking below the wedge’s lower trendline. Such a move could trigger a deeper decline, dragging the price down to around $0.22.
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.
