Stellar (XLM) has been struggling to hold its ground after a strong rally in May, dropping roughly 6% over the past week. The crypto market in general is showing weakness, with Bitcoin and Ethereum both down about 3% recently, dragging overall market capitalization down by 2.4%. This downturn reflects continued selling pressure among major cryptocurrencies, making it tough for XLM to maintain its momentum.
Price Action and Key Resistance Levels
At the end of May, Stellar surged from $0.139 to nearly $0.30, marking a 113% jump in just one week. This rapid advance created a bullish setup, but the price couldn't clear the $0.26 to $0.27 supply zone decisively, turning the move into a liquidity sweep above resistance rather than a sustained breakout. Since then, Stellar has retraced significantly, falling below the critical 78.6% Fibonacci retracement level, which often signals more downside ahead. The price also dipped under $0.18, a level that had been tested multiple times over the prior four months.
Traders Eye $0.175 and $0.183 for Bullish Signs
Technical indicators on shorter timeframes paint a cautious picture. On the 4-hour chart, the recent low at $0.168 was breached, and volume has remained flat even as prices declined. The MACD is unfavorable for buyers, suggesting the bears still control the market. For any shift to a bullish bias, Stellar must first climb back above $0.175, with $0.183 acting as a stronger confirmation point. Until those levels are reclaimed, the outlook stays tilted toward further declines, urging traders to hold off on buying.
Ethereum’s stalled price near $2,000 illustrates the resistance major coins are facing, adding context to Stellar’s challenges. Both coins reflect a broader trend of struggling to break critical resistance after recent gains.
This content is for informational purposes and does not constitute financial advice.
