XLM's next move hangs in the balance as technical indicators flash mixed signals
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Key Takeaways
XLM price has been trading within a descending channel since December highs.
The token holds support at $0.32, but overhead resistance lies at $0.37 and $0.49.
XLM price is likely to continue trading sideways as momentum remains muted.
After experiencing a 20% decrease in the 30 days, Stellar’s (XLM) price has finally found support at $0.32. Typically, this support is supposed to offer a potential foundation for a rebound.
However, multiple resistance levels stand in the way of a full recovery, threatening to stall bullish momentum. With this in play, what could be next for XLM price?
XLM was among the cryptocurrencies that performed well during the last quarter of 2024. On Dec. 6, the altcoin’s value was $0.56.
But as the year ended, the token struggled to hold on to those gains. As a result, its price fell to $0.34.
While XLM’s price bounced again in January, the last few weeks have been challenging for the token as it failed to build on the rebound to $0.50.
This decrease led to the formation of a descending triangle. A descending triangle indicates a bearish outlook as it shows that demand for an asset is weak.
As a result, the upper trendline forms higher lows with horizontal support, which could break down and lead to a further crash.
However, despite the decline, support at $0.32 seems to be holding strong. At the same time, the Chaikin Money Flow (CMF) reading, which is in the negative region, shows that the Stellar token might not experience a quick rebound.
Furthermore, overhead resistance exists at $0.37 and $0.49. At these levels, XLM experienced pullback.
As such, buying pressure needs to be intense to surpass these points. However, since the CMF shows weak buying pressure, XLM’s price is unlikely to rally.
XLM Price to Stick to Sideways Movement
XLM’s technical setup on the 4-hour timeframe also appears similar to that of the daily chart. According to the image below, the position of the Ichimoku Cloud confirms the resistance XLM faces.
Typically, the Ichimoku Cloud is an indicator that measures resistance, support, and trend. When the cloud is below the price, it indicates support.
But when it is above the price, it signifies resistance. The cloud is above XLM’s price, and the major resistance is around $0.37.
In addition, the Moving Average Convergence Divergence (MACD) is around the neutral signal line. This indicates neither bearish nor bullish momentum around the token.
If this remains the same, XLM’s price might keep hovering between $0.30 and $0.35. On the other hand, if the momentum becomes bearish, the altcoin’s value might plunge to $0.26.
But if demand for the token surged, as it did in Q4 2024, the price might bounce, with targets starting from $0.42.
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.
