Stellar (XLM) price has declined 2.58% in the last 24 hours to trade at $0.24—as per latest market data from CoinMarketCap. The altcoin is having a tough time breaking past $0.248 since the past few weeks. Although the bulls made a strong push earlier in the week, hitting resistance at the upper Bollinger Band, which has led to a decline in momentum.
On the 4-hour chart, XLM is still trading within a narrow range between $0.236 and $0.248. Additionally, the Bollinger Bands are tightening up, suggesting that volatility is decreasing.
Besides, the middle Bollinger Band around $0.236 serves as short-term support. The downside breakout could lead to prices falling to $0.224. Also, the Stochastic RSI just came crashing down from the overbought zone, showing that bullish strength is weakening. If momentum falls further, the sellers might take charge once again.
On the flip side, if the price holds above $0.236 supported by high buying volume, that could signal well for bulls and push a price rally forward. A close above $0.248 will attract buyers toward $0.26.
Triangle Tightens as Daily Chart Signals Big Move
On the daily chart, XLM is moving within a symmetrical triangle and is approaching a breakout point. Its current price movement is trapped between a descending resistance line and a rising support line. Furthermore, Stellar is still trading under its 50-day EMA, which hovers around $0.256 and functions as a formidable resistance level. However, the price bouncing off $0.22 recently shows strong buying interest at these low levels.
Notably, the MACD histogram flipped green, suggesting early bullish momentum. Still, a decisive move above $0.256 is needed to confirm trend reversal.
Derivatives Show Cautious Optimism
According to Coinglass, the derivatives data for XLM is sending out mixed signals. There is a 15% drop in trading volume, bringing it down to $174 million and open interest also fell a bit by 0.26%. On the bright side, the long/short ratios on Binance and OKX are both above 1.5, which indicates that traders are still optimistic.
Moreover, Binance’s top traders show even stronger conviction with a 1.64 ratio. Consequently, sentiment leans bullish, though short-term traders show caution. Hence, the next breakout depends heavily on volume strength.
Also Read: XLM Price Prediction: Can Stellar Enter Top 10 Crypto in 2025
