Stellar Lumens (XLM) recently confirmed a double top pattern across several timeframes, reinforcing a bearish setup that puts the price under pressure. The critical resistance was noted near $0.182, with support zones holding around $0.178. This pattern played out as expected, pushing XLM back to the key Fibonacci Retracement level near $0.172, where long-term bulls are now defending major demand territory.

Technical analysis highlights a significant resistance cluster forming between $0.19 and $0.20, corresponding to the Fibonacci 0.618 level. This zone marks a decisive point for the short-term price momentum of XLM. Buyers attempted to retest the previous high but ran into aggressive selling pressure, as noted by analyst Crypto With Gopal who called this a textbook double top situation. The neckline, a critical zone around $0.178, is tightening momentum, signaling an imminent decision point for traders.

On the derivatives side, trading volumes have picked up by over 7%, but liquidations reveal a stark imbalance. Bulls faced $401K in losses compared to just $7K on the short-sellers’ side, according to CoinGlass data. This illustrates a significant squeeze on bullish positions, amplifying near-term downside risks.

Looking at momentum indicators, several signals point to caution. The Chaikin Money Flow (CMF) stands at -0.14 on the 4-hour chart, and similar bearish signals appear on the daily chart. The Bull Bear Power (BBP) index also indicates a slight bearish tilt. Meanwhile, whale activity suggests major players are offloading positions, signaling a potential pullback.

Despite these pressures, some investors hope for a recovery to June’s double top near $0.25, but the current technical landscape is less optimistic. For context, June’s rise came after a sharp dip in the True Strength Index (TSI), which XLM hasn’t yet replicated this time around.

Proof-of-reserves expansions at major exchanges have improved transparency, but market action on XLM remains dominated by technical resistance and liquidations.

At present, Stellar Lumens sits at a crossroads, with bulls under pressure to hold the $0.172 support while facing solid resistance up high.

XLM’s price declined slightly as sellers took control near resistance.

This article is for informational purposes and does not constitute financial advice.